Correlation Between Creative Media and Libra Insurance
Can any of the company-specific risk be diversified away by investing in both Creative Media and Libra Insurance 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 Creative Media and Libra Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creative Media Community and Libra Insurance, you can compare the effects of market volatilities on Creative Media and Libra Insurance 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 Creative Media with a short position of Libra Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Media and Libra Insurance.
Diversification Opportunities for Creative Media and Libra Insurance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creative and Libra is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Creative Media Community and Libra Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libra Insurance and Creative Media 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 Creative Media Community are associated (or correlated) with Libra Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libra Insurance has no effect on the direction of Creative Media i.e., Creative Media and Libra Insurance go up and down completely randomly.
Pair Corralation between Creative Media and Libra Insurance
Assuming the 90 days trading horizon Creative Media Community is expected to generate 46.89 times more return on investment than Libra Insurance. However, Creative Media is 46.89 times more volatile than Libra Insurance. It trades about 0.12 of its potential returns per unit of risk. Libra Insurance is currently generating about 0.23 per unit of risk. If you would invest 19,200 in Creative Media Community on October 23, 2024 and sell it today you would earn a total of 9,500 from holding Creative Media Community or generate 49.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Creative Media Community vs. Libra Insurance
Performance |
Timeline |
Creative Media Community |
Libra Insurance |
Creative Media and Libra Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creative Media and Libra Insurance
The main advantage of trading using opposite Creative Media and Libra Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Media position performs unexpectedly, Libra Insurance 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 Libra Insurance will offset losses from the drop in Libra Insurance's long position.Creative Media vs. Inrom Construction Industries | Creative Media vs. Harel Insurance Investments | Creative Media vs. Menif Financial Services | Creative Media vs. Payment Financial Technologies |
Libra Insurance vs. Migdal Insurance | Libra Insurance vs. Clal Insurance Enterprises | Libra Insurance vs. B Communications | Libra Insurance vs. Scope Metals Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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