Correlation Between Altshuler Shaham and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Epitomee Medical 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 Altshuler Shaham and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altshuler Shaham Financial and Epitomee Medical, you can compare the effects of market volatilities on Altshuler Shaham and Epitomee Medical 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 Altshuler Shaham with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Epitomee Medical.
Diversification Opportunities for Altshuler Shaham and Epitomee Medical
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altshuler and Epitomee is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Altshuler Shaham 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 Altshuler Shaham Financial are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Epitomee Medical go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Epitomee Medical
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 1.22 times more return on investment than Epitomee Medical. However, Altshuler Shaham is 1.22 times more volatile than Epitomee Medical. It trades about 0.18 of its potential returns per unit of risk. Epitomee Medical is currently generating about -0.23 per unit of risk. If you would invest 60,460 in Altshuler Shaham Financial on October 23, 2024 and sell it today you would earn a total of 4,410 from holding Altshuler Shaham Financial or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Epitomee Medical
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Epitomee Medical |
Altshuler Shaham and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Epitomee Medical
The main advantage of trading using opposite Altshuler Shaham and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Epitomee Medical 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Altshuler Shaham vs. Ram On Investments and | Altshuler Shaham vs. Payment Financial Technologies | Altshuler Shaham vs. Imed Infinity Medical Limited | Altshuler Shaham vs. IDI Insurance |
| Epitomee Medical vs. Intercure | Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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