Correlation Between Hiron Trade and Klil Industries

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hiron Trade and Klil Industries 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 Hiron Trade and Klil Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiron Trade Investments Industrial and Klil Industries, you can compare the effects of market volatilities on Hiron Trade and Klil Industries 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 Hiron Trade with a short position of Klil Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiron Trade and Klil Industries.

Diversification Opportunities for Hiron Trade and Klil Industries

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Hiron and Klil is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hiron-Trade Investments Indust and Klil Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klil Industries and Hiron Trade 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 Hiron Trade Investments Industrial are associated (or correlated) with Klil Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klil Industries has no effect on the direction of Hiron Trade i.e., Hiron Trade and Klil Industries go up and down completely randomly.

Pair Corralation between Hiron Trade and Klil Industries

Assuming the 90 days trading horizon Hiron Trade Investments Industrial is expected to generate 0.74 times more return on investment than Klil Industries. However, Hiron Trade Investments Industrial is 1.34 times less risky than Klil Industries. It trades about 0.0 of its potential returns per unit of risk. Klil Industries is currently generating about -0.03 per unit of risk. If you would invest  20,572,500  in Hiron Trade Investments Industrial on December 29, 2023 and sell it today you would lose (762,500) from holding Hiron Trade Investments Industrial or give up 3.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.74%
ValuesDaily Returns

Hiron-Trade Investments Indust  vs.  Klil Industries

 Performance 
       Timeline  
Hiron-Trade Investments 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Hiron Trade Investments Industrial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hiron Trade is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Klil Industries 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Klil Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Hiron Trade and Klil Industries Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hiron Trade and Klil Industries

The main advantage of trading using opposite Hiron Trade and Klil Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiron Trade position performs unexpectedly, Klil Industries 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 Klil Industries will offset losses from the drop in Klil Industries' long position.
The idea behind Hiron Trade Investments Industrial and Klil Industries 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.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Transaction History
View history of all your transactions and understand their impact on performance
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm