Correlation Between Terminal X and Pluristem
Can any of the company-specific risk be diversified away by investing in both Terminal X and Pluristem 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 Terminal X and Pluristem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terminal X Online and Pluristem, you can compare the effects of market volatilities on Terminal X and Pluristem 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 Terminal X with a short position of Pluristem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terminal X and Pluristem.
Diversification Opportunities for Terminal X and Pluristem
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Terminal and Pluristem is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Terminal X Online and Pluristem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pluristem and Terminal X 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 Terminal X Online are associated (or correlated) with Pluristem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pluristem has no effect on the direction of Terminal X i.e., Terminal X and Pluristem go up and down completely randomly.
Pair Corralation between Terminal X and Pluristem
Assuming the 90 days trading horizon Terminal X Online is expected to generate 0.35 times more return on investment than Pluristem. However, Terminal X Online is 2.87 times less risky than Pluristem. It trades about 0.55 of its potential returns per unit of risk. Pluristem is currently generating about 0.07 per unit of risk. If you would invest 38,940 in Terminal X Online on September 12, 2024 and sell it today you would earn a total of 7,450 from holding Terminal X Online or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terminal X Online vs. Pluristem
Performance |
| Timeline |
| Terminal X Online |
| Pluristem |
Terminal X and Pluristem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terminal X and Pluristem
The main advantage of trading using opposite Terminal X and Pluristem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terminal X position performs unexpectedly, Pluristem 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 Pluristem will offset losses from the drop in Pluristem's long position.| Terminal X vs. Fox Wizel | Terminal X vs. Retailors | Terminal X vs. Delek Group | Terminal X vs. Holmes Place International |
| Pluristem vs. Lineage Cell Therapeutics | Pluristem vs. Enlivex Therapeutics | Pluristem vs. Compugen | Pluristem vs. Purple Biotech |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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