Correlation Between Levinski Ofer and Polyram Plastic

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

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

Diversification Opportunities for Levinski Ofer and Polyram Plastic

0.0

Correlation Coefficient

Levinski Ofer  Polyram Plastic

Pay attention - limited upside

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

Pair Corralation between Levinski Ofer and Polyram Plastic

If you would invest  111,904  in Polyram Plastic Industries on September 13, 2024 and sell it today you would earn a total of  12,996  from holding Polyram Plastic Industries or generate 11.61% return on investment over 90 days.

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

Levinski Ofer  vs.  Polyram Plastic Industries

Levinski Ofer

Risk-Adjusted Performance

0 of 100

Solid

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.

Polyram Plastic Indu

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Polyram Plastic Industries are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Polyram Plastic sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Levinski Ofer and Polyram Plastic

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

The idea behind Levinski Ofer and Polyram Plastic Industries 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.