Correlation Between El Mor and Ludan Engineering
Can any of the company-specific risk be diversified away by investing in both El Mor and Ludan Engineering 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 El Mor and Ludan Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Mor Electric Installation and Ludan Engineering Co, you can compare the effects of market volatilities on El Mor and Ludan Engineering 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 El Mor with a short position of Ludan Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Mor and Ludan Engineering.
Diversification Opportunities for El Mor and Ludan Engineering
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ELMR and Ludan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding El Mor Electric Installation and Ludan Engineering Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ludan Engineering and El Mor 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 El Mor Electric Installation are associated (or correlated) with Ludan Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ludan Engineering has no effect on the direction of El Mor i.e., El Mor and Ludan Engineering go up and down completely randomly.
Pair Corralation between El Mor and Ludan Engineering
Assuming the 90 days trading horizon El Mor Electric Installation is expected to generate 0.46 times more return on investment than Ludan Engineering. However, El Mor Electric Installation is 2.17 times less risky than Ludan Engineering. It trades about 0.3 of its potential returns per unit of risk. Ludan Engineering Co is currently generating about 0.02 per unit of risk. If you would invest 100,614 in El Mor Electric Installation on January 26, 2024 and sell it today you would earn a total of 4,486 from holding El Mor Electric Installation or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Mor Electric Installation vs. Ludan Engineering Co
Performance |
| Timeline |
| El Mor Electric |
| Ludan Engineering |
El Mor and Ludan Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Mor and Ludan Engineering
The main advantage of trading using opposite El Mor and Ludan Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Mor position performs unexpectedly, Ludan Engineering 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 Ludan Engineering will offset losses from the drop in Ludan Engineering's long position.| El Mor vs. Alony Hetz Properties | El Mor vs. Melisron | El Mor vs. Shufersal | El Mor vs. Israel Discount Bank |
| Ludan Engineering vs. Alony Hetz Properties | Ludan Engineering vs. Melisron | Ludan Engineering vs. Shufersal | Ludan Engineering 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |