Correlation Between Mastercard and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Mastercard and Elbit Imaging 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 Mastercard and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Elbit Imaging, you can compare the effects of market volatilities on Mastercard and Elbit Imaging 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 Mastercard with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Elbit Imaging.
Diversification Opportunities for Mastercard and Elbit Imaging
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mastercard and Elbit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and Mastercard 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 Mastercard are associated (or correlated) with Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Mastercard i.e., Mastercard and Elbit Imaging go up and down completely randomly.
Pair Corralation between Mastercard and Elbit Imaging
Allowing for the 90-day total investment horizon Mastercard is expected to generate 0.28 times more return on investment than Elbit Imaging. However, Mastercard is 3.6 times less risky than Elbit Imaging. It trades about 0.22 of its potential returns per unit of risk. Elbit Imaging is currently generating about -0.05 per unit of risk. If you would invest 36,300 in Mastercard on January 25, 2024 and sell it today you would earn a total of 9,950 from holding Mastercard or generate 27.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.49% |
| Values | Daily Returns |
Mastercard vs. Elbit Imaging
Performance |
| Timeline |
| Mastercard |
| Elbit Imaging |
Mastercard and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Elbit Imaging
The main advantage of trading using opposite Mastercard and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Mastercard vs. Senmiao Technology | Mastercard vs. X Financial Class | Mastercard vs. Yirendai | Mastercard vs. Qudian Inc |
| Elbit Imaging vs. Intercure | Elbit Imaging vs. Sofwave Medical | Elbit Imaging vs. Epitomee Medical | Elbit Imaging vs. Brainsway |
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 CEOs Directory module to screen CEOs from public companies around the world.
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