Correlation Between B Yair and Hamama

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

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

Diversification Opportunities for B Yair and Hamama

-0.5

Correlation Coefficient

B Yair  Hamama

Very good diversification

The 3 months correlation between BYAR and Hamama is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding B Yair Building and Hamama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamama and B Yair 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 B Yair Building are associated (or correlated) with Hamama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamama has no effect on the direction of B Yair i.e., B Yair and Hamama go up and down completely randomly.

Pair Corralation between B Yair and Hamama

Assuming the 90 days trading horizon B Yair Building is expected to generate 2.19 times more return on investment than Hamama. However, B Yair is 2.19 times more volatile than Hamama. It trades about 0.26 of its potential returns per unit of risk. Hamama is currently generating about -0.08 per unit of risk. If you would invest  90,340  in B Yair Building on September 29, 2024 and sell it today you would earn a total of  67,160  from holding B Yair Building or generate 74.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

B Yair Building  vs.  Hamama

B Yair Building

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in B Yair Building are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, B Yair sustained solid returns over the last few months and may actually be approaching a breakup point.

Hamama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hamama 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.

Pair Trading with B Yair and Hamama

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

The idea behind B Yair Building and Hamama 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.