Correlation Between Chia and Hod Assaf

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

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

Diversification Opportunities for Chia and Hod Assaf

-0.28

Correlation Coefficient

Chia  Hod Assaf

Very good diversification

The 3 months correlation between Chia and Hod is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Hod Assaf Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hod Assaf Industries and Chia 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 Chia are associated (or correlated) with Hod Assaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hod Assaf Industries has no effect on the direction of Chia i.e., Chia and Hod Assaf go up and down completely randomly.

Pair Corralation between Chia and Hod Assaf

Assuming the 90 days trading horizon Chia is expected to under-perform the Hod Assaf. In addition to that, Chia is 5.59 times more volatile than Hod Assaf Industries. It trades about -0.04 of its total potential returns per unit of risk. Hod Assaf Industries is currently generating about 0.04 per unit of volatility. If you would invest  504,900  in Hod Assaf Industries on October 27, 2024 and sell it today you would earn a total of  3,900  from holding Hod Assaf Industries or generate 0.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Chia  vs.  Hod Assaf Industries

Chia

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chia are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Chia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hod Assaf Industries

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hod Assaf Industries are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Hod Assaf sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chia and Hod Assaf

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

The idea behind Chia and Hod Assaf 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.