Correlation Between Altshuler Shaham and Willy Food
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Willy Food 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 Willy Food 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 Willy Food, you can compare the effects of market volatilities on Altshuler Shaham and Willy Food 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 Willy Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Willy Food.
Diversification Opportunities for Altshuler Shaham and Willy Food
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altshuler and Willy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Willy Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willy Food 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 Willy Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willy Food has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Willy Food go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Willy Food
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 0.94 times more return on investment than Willy Food. However, Altshuler Shaham Financial is 1.07 times less risky than Willy Food. It trades about 0.19 of its potential returns per unit of risk. Willy Food is currently generating about 0.17 per unit of risk. If you would invest 45,204 in Altshuler Shaham Financial on August 29, 2024 and sell it today you would earn a total of 20,696 from holding Altshuler Shaham Financial or generate 45.78% 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. Willy Food
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Willy Food |
Altshuler Shaham and Willy Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Willy Food
The main advantage of trading using opposite Altshuler Shaham and Willy Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Willy Food 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 Willy Food will offset losses from the drop in Willy Food's long position.| Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. YD More Investments | Altshuler Shaham vs. Analyst IMS Investment |
| Willy Food vs. Strauss Group | Willy Food vs. B Communications | Willy Food vs. Holmes Place International | Willy Food vs. Nova |
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 Stocks Directory module to find actively traded stocks across global markets.
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