Correlation Between Newage and Israel Land
Can any of the company-specific risk be diversified away by investing in both Newage and Israel Land 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 Newage and Israel Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newage Inc and The Israel Land, you can compare the effects of market volatilities on Newage and Israel Land 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 Newage with a short position of Israel Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newage and Israel Land.
Diversification Opportunities for Newage and Israel Land
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Newage and Israel is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Newage Inc and The Israel Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Land and Newage 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 Newage Inc are associated (or correlated) with Israel Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Land has no effect on the direction of Newage i.e., Newage and Israel Land go up and down completely randomly.
Pair Corralation between Newage and Israel Land
Given the investment horizon of 90 days Newage Inc is expected to generate 30.19 times more return on investment than Israel Land. However, Newage is 30.19 times more volatile than The Israel Land. It trades about 0.15 of its potential returns per unit of risk. The Israel Land is currently generating about 0.01 per unit of risk. If you would invest 42.00 in Newage Inc on January 24, 2024 and sell it today you would lose (41.50) from holding Newage Inc or give up 98.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 34.1% |
| Values | Daily Returns |
Newage Inc vs. The Israel Land
Performance |
| Timeline |
| Newage Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Israel Land |
Newage and Israel Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newage and Israel Land
The main advantage of trading using opposite Newage and Israel Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newage position performs unexpectedly, Israel Land 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 Land will offset losses from the drop in Israel Land's long position.| Newage vs. ZK International Group | Newage vs. Cimpress NV | Newage vs. WPP PLC ADR | Newage vs. Dolphin Entertainment |
| Israel Land vs. Fattal 1998 Holdings | Israel Land vs. El Al Israel | Israel Land vs. Bank Leumi Le Israel | Israel Land vs. Teva Pharmaceutical Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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