Correlation Between Salomon A and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Salomon A and Gan Shmuel 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 Salomon A and Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salomon A Angel and Gan Shmuel, you can compare the effects of market volatilities on Salomon A and Gan Shmuel 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 Salomon A with a short position of Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salomon A and Gan Shmuel.
Diversification Opportunities for Salomon A and Gan Shmuel
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salomon and Gan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Salomon A Angel and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel and Salomon A 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 Salomon A Angel are associated (or correlated) with Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Salomon A i.e., Salomon A and Gan Shmuel go up and down completely randomly.
Pair Corralation between Salomon A and Gan Shmuel
Assuming the 90 days trading horizon Salomon A Angel is expected to under-perform the Gan Shmuel. In addition to that, Salomon A is 1.1 times more volatile than Gan Shmuel. It trades about 0.0 of its total potential returns per unit of risk. Gan Shmuel is currently generating about 0.22 per unit of volatility. If you would invest 127,867 in Gan Shmuel on September 1, 2024 and sell it today you would earn a total of 264,133 from holding Gan Shmuel or generate 206.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salomon A Angel vs. Gan Shmuel
Performance |
| Timeline |
| Salomon A Angel |
| Gan Shmuel |
Salomon A and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salomon A and Gan Shmuel
The main advantage of trading using opposite Salomon A and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salomon A position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Salomon A vs. Kerur Holdings | Salomon A vs. Sano Brunos Enterprises | Salomon A vs. Al Bad Massuot Yitzhak |
| Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Sano Brunos Enterprises | Gan Shmuel vs. Al Bad Massuot Yitzhak |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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