Correlation Between Export Inv and Almogim Holdings

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

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

Diversification Opportunities for Export Inv and Almogim Holdings

0.9

Correlation Coefficient

Export Inv  Almogim Holdings

Almost no diversification

The 3 months correlation between Export and Almogim is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Export Inv and Almogim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almogim Holdings and Export Inv 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 Export Inv are associated (or correlated) with Almogim Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almogim Holdings has no effect on the direction of Export Inv i.e., Export Inv and Almogim Holdings go up and down completely randomly.

Pair Corralation between Export Inv and Almogim Holdings

Assuming the 90 days trading horizon Export Inv is expected to generate 2.51 times more return on investment than Almogim Holdings. However, Export Inv is 2.51 times more volatile than Almogim Holdings. It trades about 0.22 of its potential returns per unit of risk. Almogim Holdings is currently generating about 0.48 per unit of risk. If you would invest  503,300  in Export Inv on September 27, 2024 and sell it today you would earn a total of  169,700  from holding Export Inv or generate 33.72% return on investment over 90 days.

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

Export Inv  vs.  Almogim Holdings

Export Inv

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Export Inv are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Export Inv sustained solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Export Inv and Almogim Holdings

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

The idea behind Export Inv and Almogim Holdings 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.