Correlation Between Wesure Global and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Wesure Global and Sure Tech 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 Sure Tech 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 Sure Tech Investments LP, you can compare the effects of market volatilities on Wesure Global and Sure Tech 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 Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesure Global and Sure Tech.
Diversification Opportunities for Wesure Global and Sure Tech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wesure and Sure is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Wesure Global Tech and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech Investments 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Wesure Global i.e., Wesure Global and Sure Tech go up and down completely randomly.
Pair Corralation between Wesure Global and Sure Tech
Assuming the 90 days trading horizon Wesure Global Tech is expected to generate 1.07 times more return on investment than Sure Tech. However, Wesure Global is 1.07 times more volatile than Sure Tech Investments LP. It trades about 0.6 of its potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.21 per unit of risk. If you would invest 36,000 in Wesure Global Tech on August 25, 2024 and sell it today you would earn a total of 7,700 from holding Wesure Global Tech or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesure Global Tech vs. Sure Tech Investments LP
Performance |
| Timeline |
| Wesure Global Tech |
| Sure Tech Investments |
Wesure Global and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesure Global and Sure Tech
The main advantage of trading using opposite Wesure Global and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesure Global position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| Wesure Global vs. Bezeq Israeli Telecommunication | Wesure Global vs. Hiron Trade Investments Industrial | Wesure Global vs. IDI Insurance | Wesure Global vs. Rapac Communication Infrastructure |
| Sure Tech vs. Altshuler Shaham Financial | Sure Tech vs. Generation Capital | Sure Tech vs. Meitav Dash Investments | Sure Tech vs. IBI Inv House |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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