Correlation Between Infimer and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Infimer and Israel Discount 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 Infimer and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infimer and Israel Discount Bank, you can compare the effects of market volatilities on Infimer and Israel Discount 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 Infimer with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infimer and Israel Discount.
Diversification Opportunities for Infimer and Israel Discount
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infimer and Israel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Infimer and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank and Infimer 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 Infimer are associated (or correlated) with Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Infimer i.e., Infimer and Israel Discount go up and down completely randomly.
Pair Corralation between Infimer and Israel Discount
Assuming the 90 days trading horizon Infimer is expected to generate 2.46 times more return on investment than Israel Discount. However, Infimer is 2.46 times more volatile than Israel Discount Bank. It trades about 0.1 of its potential returns per unit of risk. Israel Discount Bank is currently generating about 0.06 per unit of risk. If you would invest 5,600 in Infimer on January 26, 2024 and sell it today you would earn a total of 440.00 from holding Infimer or generate 7.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Infimer vs. Israel Discount Bank
Performance |
Timeline |
Infimer |
Israel Discount Bank |
Infimer and Israel Discount Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Infimer and Israel Discount
The main advantage of trading using opposite Infimer and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infimer position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.Infimer vs. Neto ME Holdings | Infimer vs. Aryt Industries | Infimer vs. Kerur Holdings | Infimer vs. Globrands Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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