Correlation Between Amedica WT and Bank Hapoalim
Can any of the company-specific risk be diversified away by investing in both Amedica WT and Bank Hapoalim 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 Amedica WT and Bank Hapoalim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedica WT and Bank Hapoalim, you can compare the effects of market volatilities on Amedica WT and Bank Hapoalim 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 Amedica WT with a short position of Bank Hapoalim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedica WT and Bank Hapoalim.
Diversification Opportunities for Amedica WT and Bank Hapoalim
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amedica and Bank is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amedica WT and Bank Hapoalim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Hapoalim and Amedica WT 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 Amedica WT are associated (or correlated) with Bank Hapoalim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Hapoalim has no effect on the direction of Amedica WT i.e., Amedica WT and Bank Hapoalim go up and down completely randomly.
Pair Corralation between Amedica WT and Bank Hapoalim
If you would invest 297,094 in Bank Hapoalim on January 19, 2024 and sell it today you would earn a total of 29,106 from holding Bank Hapoalim or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.54% |
| Values | Daily Returns |
Amedica WT vs. Bank Hapoalim
Performance |
| Timeline |
| Amedica WT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bank Hapoalim |
Amedica WT and Bank Hapoalim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedica WT and Bank Hapoalim
The main advantage of trading using opposite Amedica WT and Bank Hapoalim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedica WT position performs unexpectedly, Bank Hapoalim 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 Bank Hapoalim will offset losses from the drop in Bank Hapoalim's long position.| Amedica WT vs. Eldorado Gold Corp | Amedica WT vs. Regeneron Pharmaceuticals | Amedica WT vs. SFL Corporation | Amedica WT vs. CECO Environmental Corp |
| Bank Hapoalim vs. Rani Zim Shopping | Bank Hapoalim vs. Accel Solutions Group | Bank Hapoalim vs. Rapac Communication Infrastructure |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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