Correlation Between Almogim Holdings and Rotshtein

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

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

Diversification Opportunities for Almogim Holdings and Rotshtein

0.93

Correlation Coefficient

Almogim Holdings  Rotshtein

Almost no diversification

The 3 months correlation between Almogim and Rotshtein is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Almogim Holdings and Rotshtein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rotshtein and Almogim Holdings 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 Almogim Holdings are associated (or correlated) with Rotshtein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rotshtein has no effect on the direction of Almogim Holdings i.e., Almogim Holdings and Rotshtein go up and down completely randomly.

Pair Corralation between Almogim Holdings and Rotshtein

Assuming the 90 days trading horizon Almogim Holdings is expected to generate 0.7 times more return on investment than Rotshtein. However, Almogim Holdings is 1.42 times less risky than Rotshtein. It trades about 0.48 of its potential returns per unit of risk. Rotshtein is currently generating about 0.27 per unit of risk. If you would invest  84,350  in Almogim Holdings on September 26, 2024 and sell it today you would earn a total of  26,150  from holding Almogim Holdings or generate 31.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Almogim Holdings  vs.  Rotshtein

Almogim Holdings

Risk-Adjusted Performance

33 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Almogim Holdings are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Almogim Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Rotshtein

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rotshtein are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Rotshtein sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Almogim Holdings and Rotshtein

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

The idea behind Almogim Holdings and Rotshtein 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.