Correlation Between Almogim Holdings and Computer Direct

Can any of the company-specific risk be diversified away by investing in both Almogim Holdings and Computer Direct 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 Almogim Holdings and Computer Direct into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Almogim Holdings and Computer Direct, you can compare the effects of market volatilities on Almogim Holdings and Computer Direct 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 Almogim Holdings with a short position of Computer Direct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almogim Holdings and Computer Direct.

Diversification Opportunities for Almogim Holdings and Computer Direct

0.97

Correlation Coefficient

Almogim Holdings  Computer Direct

Almost no diversification

The 3 months correlation between Almogim and Computer is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Almogim Holdings and Computer Direct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Direct and Almogim Holdings 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 Almogim Holdings are associated (or correlated) with Computer Direct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Direct has no effect on the direction of Almogim Holdings i.e., Almogim Holdings and Computer Direct go up and down completely randomly.

Pair Corralation between Almogim Holdings and Computer Direct

Assuming the 90 days trading horizon Almogim Holdings is expected to generate 1.2 times more return on investment than Computer Direct. However, Almogim Holdings is 1.2 times more volatile than Computer Direct. It trades about 0.09 of its potential returns per unit of risk. Computer Direct is currently generating about 0.1 per unit of risk. If you would invest  54,241  in Almogim Holdings on September 27, 2024 and sell it today you would earn a total of  56,259  from holding Almogim Holdings or generate 103.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.74%
Values	Daily Returns

Almogim Holdings  vs.  Computer Direct

Almogim Holdings

Risk-Adjusted Performance

34 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Almogim Holdings are ranked lower than 34 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Almogim Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Computer Direct

Risk-Adjusted Performance

43 of 100

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Computer Direct are ranked lower than 43 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Computer Direct sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Almogim Holdings and Computer Direct

The main advantage of trading using opposite Almogim Holdings and Computer Direct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almogim Holdings position performs unexpectedly, Computer Direct 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 Computer Direct will offset losses from the drop in Computer Direct's long position.

The idea behind Almogim Holdings and Computer Direct 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.