Correlation Between Kerur Holdings and Shufersal
Can any of the company-specific risk be diversified away by investing in both Kerur Holdings and Shufersal 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 Kerur Holdings and Shufersal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerur Holdings and Shufersal, you can compare the effects of market volatilities on Kerur Holdings and Shufersal 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 Kerur Holdings with a short position of Shufersal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerur Holdings and Shufersal.
Diversification Opportunities for Kerur Holdings and Shufersal
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kerur and Shufersal is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kerur Holdings and Shufersal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shufersal and Kerur 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 Kerur Holdings are associated (or correlated) with Shufersal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shufersal has no effect on the direction of Kerur Holdings i.e., Kerur Holdings and Shufersal go up and down completely randomly.
Pair Corralation between Kerur Holdings and Shufersal
Assuming the 90 days trading horizon Kerur Holdings is expected to generate 2.38 times less return on investment than Shufersal. But when comparing it to its historical volatility, Kerur Holdings is 1.34 times less risky than Shufersal. It trades about 0.28 of its potential returns per unit of risk. Shufersal is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 346,700 in Shufersal on September 24, 2024 and sell it today you would earn a total of 45,400 from holding Shufersal or generate 13.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kerur Holdings vs. Shufersal
Performance |
Timeline |
Kerur Holdings |
Shufersal |
Kerur Holdings and Shufersal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kerur Holdings and Shufersal
The main advantage of trading using opposite Kerur Holdings and Shufersal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerur Holdings position performs unexpectedly, Shufersal 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 Shufersal will offset losses from the drop in Shufersal's long position.Kerur Holdings vs. Neto ME Holdings | Kerur Holdings vs. Aryt Industries | Kerur Holdings vs. Scope Metals Group | Kerur Holdings vs. Delek Automotive Systems |
Shufersal vs. Neto ME Holdings | Shufersal vs. Aryt Industries | Shufersal vs. Kerur Holdings | Shufersal vs. Scope Metals Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |