Correlation Between Scope Metals and B Yair
Can any of the company-specific risk be diversified away by investing in both Scope Metals and B Yair 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 Scope Metals and B Yair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scope Metals Group and B Yair Building, you can compare the effects of market volatilities on Scope Metals and B Yair 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 Scope Metals with a short position of B Yair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scope Metals and B Yair.
Diversification Opportunities for Scope Metals and B Yair
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scope and BYAR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and B Yair Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Yair Building and Scope Metals 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 Scope Metals Group are associated (or correlated) with B Yair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Yair Building has no effect on the direction of Scope Metals i.e., Scope Metals and B Yair go up and down completely randomly.
Pair Corralation between Scope Metals and B Yair
Assuming the 90 days trading horizon Scope Metals is expected to generate 1.04 times less return on investment than B Yair. But when comparing it to its historical volatility, Scope Metals Group is 3.67 times less risky than B Yair. It trades about 0.14 of its potential returns per unit of risk. B Yair Building is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 109,700 in B Yair Building on December 1, 2024 and sell it today you would earn a total of 4,200 from holding B Yair Building or generate 3.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Scope Metals Group vs. B Yair Building
Performance |
Timeline |
Scope Metals Group |
B Yair Building |
Scope Metals and B Yair Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scope Metals and B Yair
The main advantage of trading using opposite Scope Metals and B Yair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals position performs unexpectedly, B Yair 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 B Yair will offset losses from the drop in B Yair's long position.Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
B Yair vs. Libra Insurance | B Yair vs. Gilat Telecom Global | B Yair vs. Rapac Communication Infrastructure | B Yair vs. Golan Plastic |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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