Correlation Between XTL Biopharmaceutica and Israel Shipyards
Can any of the company-specific risk be diversified away by investing in both XTL Biopharmaceutica and Israel Shipyards 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 XTL Biopharmaceutica and Israel Shipyards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTL Biopharmaceuticals and Israel Shipyards, you can compare the effects of market volatilities on XTL Biopharmaceutica and Israel Shipyards 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 XTL Biopharmaceutica with a short position of Israel Shipyards. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and Israel Shipyards.
Diversification Opportunities for XTL Biopharmaceutica and Israel Shipyards
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTL and Israel is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals and Israel Shipyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Shipyards and XTL Biopharmaceutica 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 XTL Biopharmaceuticals are associated (or correlated) with Israel Shipyards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Shipyards has no effect on the direction of XTL Biopharmaceutica i.e., XTL Biopharmaceutica and Israel Shipyards go up and down completely randomly.
Pair Corralation between XTL Biopharmaceutica and Israel Shipyards
Assuming the 90 days trading horizon XTL Biopharmaceutica is expected to generate 2.05 times less return on investment than Israel Shipyards. In addition to that, XTL Biopharmaceutica is 1.7 times more volatile than Israel Shipyards. It trades about 0.06 of its total potential returns per unit of risk. Israel Shipyards is currently generating about 0.2 per unit of volatility. If you would invest 725,000 in Israel Shipyards on September 1, 2024 and sell it today you would earn a total of 76,500 from holding Israel Shipyards or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTL Biopharmaceuticals vs. Israel Shipyards
Performance |
| Timeline |
| XTL Biopharmaceuticals |
| Israel Shipyards |
XTL Biopharmaceutica and Israel Shipyards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTL Biopharmaceutica and Israel Shipyards
The main advantage of trading using opposite XTL Biopharmaceutica and Israel Shipyards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTL Biopharmaceutica position performs unexpectedly, Israel Shipyards 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 Israel Shipyards will offset losses from the drop in Israel Shipyards' long position.| XTL Biopharmaceutica vs. XTL Biopharmaceuticals Ltd | XTL Biopharmaceutica vs. Intercure | XTL Biopharmaceutica vs. BioLine RX | XTL Biopharmaceutica vs. Foresight Autonomous Holdings |
| Israel Shipyards vs. Ilex Medical | Israel Shipyards vs. Skyline Investments | Israel Shipyards vs. Elbit Medical Technologies | Israel Shipyards vs. Electreon Wireless |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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