Two Equities Correlation Analysis
Specify exactly 2 symbols:
ELDAV.TA
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Eldav L and NYSE Composite
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eldav and NYSE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eldav-L and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Eldav L 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 Eldav L are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Eldav L i.e., Eldav L and NYSE Composite go up and down completely randomly.
Pair Corralation between Eldav L and NYSE Composite
Assuming the 90 days trading horizon Eldav L is expected to generate 4.79 times more return on investment than NYSE Composite. However, Eldav L is 4.79 times more volatile than NYSE Composite. It trades about 0.06 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.11 per unit of risk. If you would invest 15,800 in Eldav L on December 29, 2023 and sell it today you would earn a total of 4,200 from holding Eldav L or generate 26.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 80.65% |
Values | Daily Returns |
Eldav-L vs. NYSE Composite
Performance |
Timeline |
Eldav L and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Eldav L
Pair trading matchups for Eldav L
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Eldav L and NYSE Composite
The main advantage of trading using opposite Eldav L and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldav L position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Eldav L vs. Ratio Oil Explorations | Eldav L vs. Bezeq Israeli Telecommunication | Eldav L vs. Arena Star Group | Eldav L vs. ICL Israel Chemicals |
NYSE Composite vs. SNDL Inc | NYSE Composite vs. Village Super Market | NYSE Composite vs. CF Industries Holdings | NYSE Composite vs. Albertsons Companies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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