Correlation Between M Yochananof and Photomyne
Can any of the company-specific risk be diversified away by investing in both M Yochananof and Photomyne 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 Photomyne 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 Photomyne, you can compare the effects of market volatilities on M Yochananof and Photomyne 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 Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Yochananof and Photomyne.
Diversification Opportunities for M Yochananof and Photomyne
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YHNF and Photomyne is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding M Yochananof and and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne 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 Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of M Yochananof i.e., M Yochananof and Photomyne go up and down completely randomly.
Pair Corralation between M Yochananof and Photomyne
Assuming the 90 days trading horizon M Yochananof is expected to generate 2.24 times less return on investment than Photomyne. But when comparing it to its historical volatility, M Yochananof and is 1.47 times less risky than Photomyne. It trades about 0.04 of its potential returns per unit of risk. Photomyne is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 161,000 in Photomyne on September 13, 2024 and sell it today you would earn a total of 140,400 from holding Photomyne or generate 87.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
M Yochananof and vs. Photomyne
Performance |
| Timeline |
| M Yochananof |
| Photomyne |
M Yochananof and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Yochananof and Photomyne
The main advantage of trading using opposite M Yochananof and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Yochananof position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| M Yochananof vs. Rami Levi | M Yochananof vs. Shufersal | M Yochananof vs. Strauss Group | M Yochananof vs. Victory Supermarket Chain |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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