Correlation Between Elbit Systems and Cubic
Can any of the company-specific risk be diversified away by investing in both Elbit Systems and Cubic 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 Systems and Cubic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and Cubic, you can compare the effects of market volatilities on Elbit Systems and Cubic 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 Systems with a short position of Cubic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and Cubic.
Diversification Opportunities for Elbit Systems and Cubic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elbit and Cubic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and Cubic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cubic and Elbit Systems 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 Systems are associated (or correlated) with Cubic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cubic has no effect on the direction of Elbit Systems i.e., Elbit Systems and Cubic go up and down completely randomly.
Pair Corralation between Elbit Systems and Cubic
If you would invest (100.00) in Cubic on March 6, 2024 and sell it today you would earn a total of 100.00 from holding Cubic or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Elbit Systems vs. Cubic
Performance |
| Timeline |
| Elbit Systems |
| Cubic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elbit Systems and Cubic Volatility Contrast
Predicted Return Density |
| Returns |