Correlation Between TAT Technologies and Pluristem

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

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

Diversification Opportunities for TAT Technologies and Pluristem

0.0

Correlation Coefficient

TAT Technologies  Pluristem

Pay attention - limited upside

The 3 months correlation between TAT and Pluristem is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TAT Technologies and Pluristem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pluristem and TAT Technologies 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 TAT Technologies are associated (or correlated) with Pluristem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pluristem has no effect on the direction of TAT Technologies i.e., TAT Technologies and Pluristem go up and down completely randomly.

Pair Corralation between TAT Technologies and Pluristem

If you would invest  638,400  in TAT Technologies on September 16, 2024 and sell it today you would earn a total of  305,600  from holding TAT Technologies or generate 47.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TAT Technologies  vs.  Pluristem

TAT Technologies

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TAT Technologies are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, TAT Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pluristem

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pluristem has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Pluristem is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TAT Technologies and Pluristem

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

The idea behind TAT Technologies and Pluristem 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..