Correlation Between Elbit Imaging and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging and US Bancorp 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 Elbit Imaging and US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and US Bancorp PERP, you can compare the effects of market volatilities on Elbit Imaging and US Bancorp 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 Elbit Imaging with a short position of US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and US Bancorp.
Diversification Opportunities for Elbit Imaging and US Bancorp
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elbit and USB-PA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and US Bancorp PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp PERP and Elbit Imaging 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 Elbit Imaging are associated (or correlated) with US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp PERP has no effect on the direction of Elbit Imaging i.e., Elbit Imaging and US Bancorp go up and down completely randomly.
Pair Corralation between Elbit Imaging and US Bancorp
If you would invest 83,596 in US Bancorp PERP on December 30, 2023 and sell it today you would earn a total of 849.00 from holding US Bancorp PERP or generate 1.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Elbit Imaging vs. US Bancorp PERP
Performance |
Timeline |
Elbit Imaging |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
US Bancorp PERP |
Elbit Imaging and US Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elbit Imaging and US Bancorp
The main advantage of trading using opposite Elbit Imaging and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.Elbit Imaging vs. Paul Mueller Co | Elbit Imaging vs. Jacobs Solutions | Elbit Imaging vs. Chart Industries | Elbit Imaging vs. CECO Environmental Corp |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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