Correlation Between M Yochananof and Kerur Holdings
Can any of the company-specific risk be diversified away by investing in both M Yochananof and Kerur Holdings 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 M Yochananof and Kerur Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M Yochananof and and Kerur Holdings, you can compare the effects of market volatilities on M Yochananof and Kerur Holdings 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 M Yochananof with a short position of Kerur Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Yochananof and Kerur Holdings.
Diversification Opportunities for M Yochananof and Kerur Holdings
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YHNF and Kerur is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding M Yochananof and and Kerur Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerur Holdings and M Yochananof 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 M Yochananof and are associated (or correlated) with Kerur Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerur Holdings has no effect on the direction of M Yochananof i.e., M Yochananof and Kerur Holdings go up and down completely randomly.
Pair Corralation between M Yochananof and Kerur Holdings
Assuming the 90 days trading horizon M Yochananof and is expected to generate 1.64 times more return on investment than Kerur Holdings. However, M Yochananof is 1.64 times more volatile than Kerur Holdings. It trades about 0.4 of its potential returns per unit of risk. Kerur Holdings is currently generating about 0.45 per unit of risk. If you would invest 2,184,000 in M Yochananof and on August 26, 2024 and sell it today you would earn a total of 204,000 from holding M Yochananof and or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
M Yochananof and vs. Kerur Holdings
Performance |
| Timeline |
| M Yochananof |
| Kerur Holdings |
M Yochananof and Kerur Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Yochananof and Kerur Holdings
The main advantage of trading using opposite M Yochananof and Kerur Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Yochananof position performs unexpectedly, Kerur Holdings 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 Kerur Holdings will offset losses from the drop in Kerur Holdings' long position.| M Yochananof vs. Rami Levi | M Yochananof vs. Shufersal | M Yochananof vs. Strauss Group | M Yochananof vs. Victory Supermarket Chain |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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