Correlation Between Telsys and Automatic Bank
Can any of the company-specific risk be diversified away by investing in both Telsys and Automatic Bank 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 Telsys and Automatic Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telsys and Automatic Bank Services, you can compare the effects of market volatilities on Telsys and Automatic Bank 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 Telsys with a short position of Automatic Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telsys and Automatic Bank.
Diversification Opportunities for Telsys and Automatic Bank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telsys and Automatic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Telsys and Automatic Bank Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Bank Services and Telsys 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 Telsys are associated (or correlated) with Automatic Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Bank Services has no effect on the direction of Telsys i.e., Telsys and Automatic Bank go up and down completely randomly.
Pair Corralation between Telsys and Automatic Bank
Assuming the 90 days trading horizon Telsys is expected to under-perform the Automatic Bank. In addition to that, Telsys is 2.33 times more volatile than Automatic Bank Services. It trades about -0.12 of its total potential returns per unit of risk. Automatic Bank Services is currently generating about 0.39 per unit of volatility. If you would invest 183,300 in Automatic Bank Services on August 31, 2024 and sell it today you would earn a total of 30,300 from holding Automatic Bank Services or generate 16.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Telsys vs. Automatic Bank Services
Performance |
Timeline |
Telsys |
Automatic Bank Services |
Telsys and Automatic Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telsys and Automatic Bank
The main advantage of trading using opposite Telsys and Automatic Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telsys position performs unexpectedly, Automatic Bank 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 Automatic Bank will offset losses from the drop in Automatic Bank's long position.Telsys vs. Automatic Bank Services | Telsys vs. EN Shoham Business | Telsys vs. Rapac Communication Infrastructure | Telsys vs. Qualitau |
Automatic Bank vs. Telsys | Automatic Bank vs. EN Shoham Business | Automatic Bank vs. Brainsway | Automatic Bank vs. Mivne Real Estate |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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