Correlation Between IBI Inv and Altshuler Shaham

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

By analyzing existing cross correlation between IBI Inv House and Altshuler Shaham Financial, you can compare the effects of market volatilities on IBI Inv and Altshuler Shaham 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 IBI Inv with a short position of Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Inv and Altshuler Shaham.

Diversification Opportunities for IBI Inv and Altshuler Shaham

0.9

Correlation Coefficient

IBI Inv  Altshuler Shaham

Almost no diversification

The 3 months correlation between IBI and Altshuler is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding IBI Inv House and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin and IBI Inv 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 IBI Inv House are associated (or correlated) with Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of IBI Inv i.e., IBI Inv and Altshuler Shaham go up and down completely randomly.

Pair Corralation between IBI Inv and Altshuler Shaham

Assuming the 90 days trading horizon IBI Inv House is expected to generate 0.85 times more return on investment than Altshuler Shaham. However, IBI Inv House is 1.17 times less risky than Altshuler Shaham. It trades about 0.22 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about 0.14 per unit of risk. If you would invest  1,233,556  in IBI Inv House on September 24, 2024 and sell it today you would earn a total of  256,444  from holding IBI Inv House or generate 20.79% return on investment over 90 days.

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

IBI Inv House  vs.  Altshuler Shaham Financial

IBI Inv House

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IBI Inv House are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, IBI Inv sustained solid returns over the last few months and may actually be approaching a breakup point.

Altshuler Shaham Fin

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Altshuler Shaham sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IBI Inv and Altshuler Shaham

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

The idea behind IBI Inv House and Altshuler Shaham Financial 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.