Correlation Between Iargento and Almogim Holdings

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

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

Diversification Opportunities for Iargento and Almogim Holdings

-0.38

Correlation Coefficient

Iargento  Almogim Holdings

Very good diversification

The 3 months correlation between Iargento and Almogim is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Iargento Hi Tech and Almogim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almogim Holdings and Iargento 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 Iargento Hi Tech 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 Iargento i.e., Iargento and Almogim Holdings go up and down completely randomly.

Pair Corralation between Iargento and Almogim Holdings

Assuming the 90 days trading horizon Iargento Hi Tech is expected to under-perform the Almogim Holdings. In addition to that, Iargento is 2.32 times more volatile than Almogim Holdings. It trades about -0.05 of its total potential returns per unit of risk. Almogim Holdings is currently generating about 0.44 per unit of volatility. If you would invest  81,300  in Almogim Holdings on September 27, 2024 and sell it today you would earn a total of  29,200  from holding Almogim Holdings or generate 35.92% return on investment over 90 days.

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

Iargento Hi Tech  vs.  Almogim Holdings

Iargento Hi Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iargento Hi Tech 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.

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 Iargento and Almogim Holdings

The main advantage of trading using opposite Iargento and Almogim Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iargento 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 Iargento Hi Tech 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.