Correlation Between Wesure Global and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Wesure Global and Elbit Imaging 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 Wesure Global and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesure Global Tech and Elbit Imaging, you can compare the effects of market volatilities on Wesure Global and Elbit Imaging 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 Wesure Global with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesure Global and Elbit Imaging.
Diversification Opportunities for Wesure Global and Elbit Imaging
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wesure and Elbit is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Wesure Global Tech and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and Wesure Global 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 Wesure Global Tech are associated (or correlated) with Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Wesure Global i.e., Wesure Global and Elbit Imaging go up and down completely randomly.
Pair Corralation between Wesure Global and Elbit Imaging
Assuming the 90 days trading horizon Wesure Global Tech is expected to under-perform the Elbit Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Wesure Global Tech is 2.93 times less risky than Elbit Imaging. The stock trades about -0.2 of its potential returns per unit of risk. The Elbit Imaging is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 60,000 in Elbit Imaging on November 3, 2024 and sell it today you would earn a total of 14,000 from holding Elbit Imaging or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesure Global Tech vs. Elbit Imaging
Performance |
| Timeline |
| Wesure Global Tech |
| Elbit Imaging |
Wesure Global and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesure Global and Elbit Imaging
The main advantage of trading using opposite Wesure Global and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesure Global position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Wesure Global vs. Discount Investment Corp | Wesure Global vs. Sure Tech Investments LP | Wesure Global vs. MEITAV INVESTMENTS HOUSE | Wesure Global vs. Skyline Investments |
| Elbit Imaging vs. Abra Information Technologies | Elbit Imaging vs. Clal Insurance Enterprises | Elbit Imaging vs. Electreon Wireless | Elbit Imaging vs. Analyst IMS Investment |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |