Correlation Between Elbit Imaging and Franklin Real

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

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

Diversification Opportunities for Elbit Imaging and Franklin Real

0.0

Correlation Coefficient

Elbit Imaging  Franklin Real

Pay attention - limited upside

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

Pair Corralation between Elbit Imaging and Franklin Real

If you would invest (100.00) in Elbit Imaging on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Elbit Imaging or generate -100.0% return on investment over 90 days.

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

Elbit Imaging  vs.  Franklin Real Estate

Elbit Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elbit Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Elbit Imaging is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Franklin Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Franklin Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Elbit Imaging and Franklin Real

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

The idea behind Elbit Imaging and Franklin Real Estate 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.