Two Equities Correlation Analysis
Specify exactly 2 symbols:
EMITF.TA
Add Two Equities
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 Elbit Imaging and NYSE Composite
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elbit and NYSE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Elbit Imaging 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 Imaging 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 Elbit Imaging i.e., Elbit Imaging and NYSE Composite go up and down completely randomly.
Pair Corralation between Elbit Imaging and NYSE Composite
Assuming the 90 days trading horizon Elbit Imaging is expected to under-perform the NYSE Composite. In addition to that, Elbit Imaging is 4.25 times more volatile than NYSE Composite. It trades about -0.13 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.13 per unit of volatility. If you would invest 1,676,925 in NYSE Composite on January 24, 2024 and sell it today you would earn a total of 83,294 from holding NYSE Composite or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Elbit Imaging vs. NYSE Composite
Performance |
| Timeline |
Elbit Imaging and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Elbit Imaging
Pair trading matchups for Elbit Imaging
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Elbit Imaging and NYSE Composite
The main advantage of trading using opposite Elbit Imaging and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging 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.The idea behind Elbit Imaging and NYSE Composite 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.| NYSE Composite vs. Reservoir Media | NYSE Composite vs. National CineMedia | NYSE Composite vs. Ubisoft Entertainment | NYSE Composite vs. Emerson Radio |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |