Correlation Between Isras Investment and Brand
Can any of the company-specific risk be diversified away by investing in both Isras Investment and Brand 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 Isras Investment and Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isras Investment and Brand Group, you can compare the effects of market volatilities on Isras Investment and Brand 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 Isras Investment with a short position of Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isras Investment and Brand.
Diversification Opportunities for Isras Investment and Brand
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Isras and Brand is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Isras Investment and Brand Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brand Group and Isras Investment 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 Isras Investment are associated (or correlated) with Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brand Group has no effect on the direction of Isras Investment i.e., Isras Investment and Brand go up and down completely randomly.
Pair Corralation between Isras Investment and Brand
Assuming the 90 days trading horizon Isras Investment is expected to generate 0.55 times more return on investment than Brand. However, Isras Investment is 1.81 times less risky than Brand. It trades about -0.07 of its potential returns per unit of risk. Brand Group is currently generating about -0.16 per unit of risk. If you would invest 7,457,000 in Isras Investment on February 5, 2024 and sell it today you would lose (99,000) from holding Isras Investment or give up 1.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Isras Investment vs. Brand Group
Performance |
Timeline |
Isras Investment |
Brand Group |
Isras Investment and Brand Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Isras Investment and Brand
The main advantage of trading using opposite Isras Investment and Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isras Investment position performs unexpectedly, Brand 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 Brand will offset losses from the drop in Brand's long position.Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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