Correlation Between Altshuler Shaham and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Mivtach 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 Altshuler Shaham and Mivtach Shamir 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 Mivtach Shamir, you can compare the effects of market volatilities on Altshuler Shaham and Mivtach 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 Altshuler Shaham with a short position of Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Mivtach Shamir.
Diversification Opportunities for Altshuler Shaham and Mivtach Shamir
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Altshuler and Mivtach is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir 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 Mivtach Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivtach Shamir has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Mivtach Shamir
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 1.15 times more return on investment than Mivtach Shamir. However, Altshuler Shaham is 1.15 times more volatile than Mivtach Shamir. It trades about 0.31 of its potential returns per unit of risk. Mivtach Shamir is currently generating about 0.08 per unit of risk. If you would invest 49,367 in Altshuler Shaham Financial on August 29, 2024 and sell it today you would earn a total of 18,113 from holding Altshuler Shaham Financial or generate 36.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Mivtach Shamir
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Mivtach Shamir |
Altshuler Shaham and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Mivtach Shamir
The main advantage of trading using opposite Altshuler Shaham and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Mivtach 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 Mivtach Shamir will offset losses from the drop in Mivtach Shamir's long position.| Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. YD More Investments | Altshuler Shaham vs. Analyst IMS Investment |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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