Correlation Between Accel Solutions and Zur Shamir
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Zur Shamir 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 Accel Solutions and Zur Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Solutions Group and Zur Shamir Holdings, you can compare the effects of market volatilities on Accel Solutions and Zur Shamir 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 Accel Solutions with a short position of Zur Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Zur Shamir.
Diversification Opportunities for Accel Solutions and Zur Shamir
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Accel and Zur is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Zur Shamir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zur Shamir Holdings and Accel Solutions 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 Accel Solutions Group are associated (or correlated) with Zur Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zur Shamir Holdings has no effect on the direction of Accel Solutions i.e., Accel Solutions and Zur Shamir go up and down completely randomly.
Pair Corralation between Accel Solutions and Zur Shamir
Assuming the 90 days trading horizon Accel Solutions Group is expected to under-perform the Zur Shamir. In addition to that, Accel Solutions is 1.79 times more volatile than Zur Shamir Holdings. It trades about -0.09 of its total potential returns per unit of risk. Zur Shamir Holdings is currently generating about 0.17 per unit of volatility. If you would invest 66,400 in Zur Shamir Holdings on September 3, 2024 and sell it today you would earn a total of 3,070 from holding Zur Shamir Holdings or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Zur Shamir Holdings
Performance |
| Timeline |
| Accel Solutions Group |
| Zur Shamir Holdings |
Accel Solutions and Zur Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Zur Shamir
The main advantage of trading using opposite Accel Solutions and Zur Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Zur Shamir 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 Zur Shamir will offset losses from the drop in Zur Shamir's long position.| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
| Zur Shamir vs. Bank Hapoalim | Zur Shamir vs. Israel Discount Bank | Zur Shamir vs. First International Bank | Zur Shamir vs. Elbit Systems |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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