Correlation Between Altshuler Shaham and Icon
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Icon 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 Icon 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 Icon Group, you can compare the effects of market volatilities on Altshuler Shaham and Icon 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 Icon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Icon.
Diversification Opportunities for Altshuler Shaham and Icon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altshuler and Icon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Icon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Group 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 Icon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Group has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Icon go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Icon
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 0.86 times more return on investment than Icon. However, Altshuler Shaham Financial is 1.16 times less risky than Icon. It trades about 0.2 of its potential returns per unit of risk. Icon Group is currently generating about -0.12 per unit of risk. If you would invest 62,419 in Altshuler Shaham Financial on September 2, 2024 and sell it today you would earn a total of 4,291 from holding Altshuler Shaham Financial or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Icon Group
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Icon Group |
Altshuler Shaham and Icon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Icon
The main advantage of trading using opposite Altshuler Shaham and Icon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Icon 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 Icon will offset losses from the drop in Icon's long position.| Altshuler Shaham vs. Generation Capital | Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. IBI Inv House | Altshuler Shaham vs. Mivtach Shamir |
| Icon vs. Automatic Bank Services | Icon vs. Israel China Biotechnology | Icon vs. Veridis Environment | Icon vs. Millennium Food Tech LP |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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