Correlation Between Altshuler Shaham and Scope Metals
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Scope Metals 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 Scope Metals 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 Scope Metals Group, you can compare the effects of market volatilities on Altshuler Shaham and Scope Metals 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 Scope Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Scope Metals.
Diversification Opportunities for Altshuler Shaham and Scope Metals
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altshuler and Scope is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Scope Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scope Metals 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 Scope Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scope Metals Group has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Scope Metals go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Scope Metals
Assuming the 90 days trading horizon Altshuler Shaham is expected to generate 1.09 times less return on investment than Scope Metals. In addition to that, Altshuler Shaham is 1.09 times more volatile than Scope Metals Group. It trades about 0.07 of its total potential returns per unit of risk. Scope Metals Group is currently generating about 0.08 per unit of volatility. If you would invest 1,005,000 in Scope Metals Group on August 25, 2024 and sell it today you would earn a total of 344,000 from holding Scope Metals Group or generate 34.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Scope Metals Group
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Scope Metals Group |
Altshuler Shaham and Scope Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Scope Metals
The main advantage of trading using opposite Altshuler Shaham and Scope Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Scope Metals 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 Scope Metals will offset losses from the drop in Scope Metals' long position.| Altshuler Shaham vs. Generation Capital | Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. IBI Inv House | Altshuler Shaham vs. Mivtach Shamir |
| Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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