Correlation Between Tefron and Leisure Fund
Can any of the company-specific risk be diversified away by investing in both Tefron and Leisure Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tefron and Leisure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tefron and Leisure Fund Investor, you can compare the effects of market volatilities on Tefron and Leisure Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tefron with a short position of Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tefron and Leisure Fund.
Diversification Opportunities for Tefron and Leisure Fund
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tefron and Leisure is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tefron and Leisure Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Investor and Tefron is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tefron are associated (or correlated) with Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Investor has no effect on the direction of Tefron i.e., Tefron and Leisure Fund go up and down completely randomly.
Pair Corralation between Tefron and Leisure Fund
If you would invest 9,052 in Leisure Fund Investor on September 2, 2024 and sell it today you would earn a total of 728.00 from holding Leisure Fund Investor or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tefron vs. Leisure Fund Investor
Performance |
| Timeline |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leisure Fund Investor |
Tefron and Leisure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tefron and Leisure Fund
The main advantage of trading using opposite Tefron and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tefron position performs unexpectedly, Leisure Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Leisure Fund will offset losses from the drop in Leisure Fund's long position.The idea behind Tefron and Leisure Fund Investor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Leisure Fund vs. Retailing Fund Investor | Leisure Fund vs. Financial Services Fund | Leisure Fund vs. Banking Fund Investor | Leisure Fund vs. Health Care Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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