Correlation Between Levinski Ofer and Norstar

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

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

Diversification Opportunities for Levinski Ofer and Norstar

0.0

Correlation Coefficient

Levinski Ofer  Norstar

Pay attention - limited upside

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

Pair Corralation between Levinski Ofer and Norstar

If you would invest  0.00  in Levinski Ofer on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Levinski Ofer or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.92%
Values	Daily Returns

Levinski Ofer  vs.  Norstar

Levinski Ofer

Risk-Adjusted Performance

Good

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

Norstar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Norstar has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Levinski Ofer and Norstar

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

The idea behind Levinski Ofer and Norstar 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.