Correlation Between Shufersal and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both Shufersal and Shagrir Group 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 Shufersal and Shagrir Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Shagrir Group Vehicle, you can compare the effects of market volatilities on Shufersal and Shagrir Group 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 Shufersal with a short position of Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Shagrir Group.
Diversification Opportunities for Shufersal and Shagrir Group
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shufersal and Shagrir is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle and Shufersal 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 Shufersal are associated (or correlated) with Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of Shufersal i.e., Shufersal and Shagrir Group go up and down completely randomly.
Pair Corralation between Shufersal and Shagrir Group
Assuming the 90 days trading horizon Shufersal is expected to generate 1.8 times less return on investment than Shagrir Group. But when comparing it to its historical volatility, Shufersal is 1.63 times less risky than Shagrir Group. It trades about 0.23 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 95,580 in Shagrir Group Vehicle on September 25, 2024 and sell it today you would earn a total of 28,820 from holding Shagrir Group Vehicle or generate 30.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shufersal vs. Shagrir Group Vehicle
Performance |
Timeline |
Shufersal |
Shagrir Group Vehicle |
Shufersal and Shagrir Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shufersal and Shagrir Group
The main advantage of trading using opposite Shufersal and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Shagrir Group 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 Shagrir Group will offset losses from the drop in Shagrir Group's long position.Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
Shagrir Group vs. Ashtrom Group | Shagrir Group vs. Aura Investments | Shagrir Group vs. Shapir Engineering Industry |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |