Correlation Between Blue Square and Elbit Systems
Can any of the company-specific risk be diversified away by investing in both Blue Square 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 Blue Square and Elbit Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Square Real and Elbit Systems, you can compare the effects of market volatilities on Blue Square 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 Blue Square with a short position of Elbit Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Square and Elbit Systems.
Diversification Opportunities for Blue Square and Elbit Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Elbit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blue Square Real and Elbit Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Systems and Blue Square 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 Blue Square Real 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 Blue Square i.e., Blue Square and Elbit Systems go up and down completely randomly.
Pair Corralation between Blue Square and Elbit Systems
Assuming the 90 days trading horizon Blue Square Real is expected to generate 2.26 times more return on investment than Elbit Systems. However, Blue Square is 2.26 times more volatile than Elbit Systems. It trades about 0.27 of its potential returns per unit of risk. Elbit Systems is currently generating about 0.02 per unit of risk. If you would invest 2,421,484 in Blue Square Real on January 26, 2024 and sell it today you would earn a total of 358,516 from holding Blue Square Real or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Square Real vs. Elbit Systems
Performance |
| Timeline |
| Blue Square Real |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Elbit Systems |
Blue Square and Elbit Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Square and Elbit Systems
The main advantage of trading using opposite Blue Square and Elbit Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Square 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.| Blue Square vs. Amot Investments | Blue Square vs. Big Shopping Centers | Blue Square vs. Alony Hetz Properties | Blue Square vs. Melisron |
| Elbit Systems vs. Alony Hetz Properties | Elbit Systems vs. Melisron | Elbit Systems vs. Shufersal | Elbit Systems vs. Israel Discount Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |