Correlation Between Ybox Real and Plaza Centers
Can any of the company-specific risk be diversified away by investing in both Ybox Real and Plaza Centers 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 Ybox Real and Plaza Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ybox Real Estate and Plaza Centers NV, you can compare the effects of market volatilities on Ybox Real and Plaza Centers 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 Ybox Real with a short position of Plaza Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ybox Real and Plaza Centers.
Diversification Opportunities for Ybox Real and Plaza Centers
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ybox and Plaza is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ybox Real Estate and Plaza Centers NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Centers NV and Ybox Real 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 Ybox Real Estate are associated (or correlated) with Plaza Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Centers NV has no effect on the direction of Ybox Real i.e., Ybox Real and Plaza Centers go up and down completely randomly.
Pair Corralation between Ybox Real and Plaza Centers
Assuming the 90 days trading horizon Ybox Real Estate is expected to generate 8.15 times more return on investment than Plaza Centers. However, Ybox Real is 8.15 times more volatile than Plaza Centers NV. It trades about 0.47 of its potential returns per unit of risk. Plaza Centers NV is currently generating about 0.2 per unit of risk. If you would invest 7,600 in Ybox Real Estate on August 29, 2024 and sell it today you would earn a total of 1,670 from holding Ybox Real Estate or generate 21.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ybox Real Estate vs. Plaza Centers NV
Performance |
| Timeline |
| Ybox Real Estate |
| Plaza Centers NV |
Ybox Real and Plaza Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ybox Real and Plaza Centers
The main advantage of trading using opposite Ybox Real and Plaza Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ybox Real position performs unexpectedly, Plaza Centers 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 Plaza Centers will offset losses from the drop in Plaza Centers' long position.| Ybox Real vs. Bank Hapoalim | Ybox Real vs. Israel Discount Bank | Ybox Real vs. Bezeq Israeli Telecommunication | Ybox Real vs. Elbit Systems |
| Plaza Centers vs. Ybox Real Estate | Plaza Centers vs. Brainsway | Plaza Centers vs. Mivne Real Estate | Plaza Centers vs. Photomyne |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |