Correlation Between Brack Capit and Elbit Systems
Can any of the company-specific risk be diversified away by investing in both Brack Capit and Elbit Systems 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 Brack Capit and Elbit Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brack Capit N and Elbit Systems, you can compare the effects of market volatilities on Brack Capit and Elbit Systems 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 Brack Capit with a short position of Elbit Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brack Capit and Elbit Systems.
Diversification Opportunities for Brack Capit and Elbit Systems
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brack and Elbit is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Brack Capit N and Elbit Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Systems and Brack Capit 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 Brack Capit N are associated (or correlated) with Elbit Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Systems has no effect on the direction of Brack Capit i.e., Brack Capit and Elbit Systems go up and down completely randomly.
Pair Corralation between Brack Capit and Elbit Systems
If you would invest 2,200,000 in Brack Capit N on February 6, 2024 and sell it today you would earn a total of 0.00 from holding Brack Capit N or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Brack Capit N vs. Elbit Systems
Performance |
Timeline |
Brack Capit N |
Elbit Systems |
Brack Capit and Elbit Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brack Capit and Elbit Systems
The main advantage of trading using opposite Brack Capit and Elbit Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brack Capit position performs unexpectedly, Elbit Systems 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 Elbit Systems will offset losses from the drop in Elbit Systems' long position.The idea behind Brack Capit N and Elbit Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Elbit Systems vs. Nice | Elbit Systems vs. Bank Leumi Le Israel | Elbit Systems vs. Teva Pharmaceutical Industries | Elbit Systems vs. Bank Hapoalim |
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 Stocks Directory module to find actively traded stocks across global markets.
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