Correlation Between Altshuler Shaham and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Sure Tech 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 Sure Tech 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 Sure Tech Investments LP, you can compare the effects of market volatilities on Altshuler Shaham and Sure Tech 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 Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Sure Tech.
Diversification Opportunities for Altshuler Shaham and Sure Tech
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Altshuler and Sure is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech Investments 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Sure Tech go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Sure Tech
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to under-perform the Sure Tech. But the stock apears to be less risky and, when comparing its historical volatility, Altshuler Shaham Financial is 1.01 times less risky than Sure Tech. The stock trades about -0.48 of its potential returns per unit of risk. The Sure Tech Investments LP is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 73,830 in Sure Tech Investments LP on November 5, 2024 and sell it today you would lose (1,820) from holding Sure Tech Investments LP or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Sure Tech Investments LP
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Sure Tech Investments |
Altshuler Shaham and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Sure Tech
The main advantage of trading using opposite Altshuler Shaham and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| Altshuler Shaham vs. Petrochemical | Altshuler Shaham vs. Adgar Investments and | Altshuler Shaham vs. Sure Tech Investments LP | Altshuler Shaham vs. One Software Technologies |
| Sure Tech vs. PennantPark Floating Rate | Sure Tech vs. Altshuler Shaham Financial | Sure Tech vs. Generation Capital | Sure Tech vs. Meitav Dash Investments |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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