Correlation Between Salomon A and Hod Assaf
Can any of the company-specific risk be diversified away by investing in both Salomon A and Hod Assaf 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 Hod Assaf 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 Hod Assaf Industries, you can compare the effects of market volatilities on Salomon A and Hod Assaf 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 Hod Assaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salomon A and Hod Assaf.
Diversification Opportunities for Salomon A and Hod Assaf
Good diversification
The 3 months correlation between Salomon and Hod is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Salomon A Angel and Hod Assaf Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hod Assaf Industries 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 Hod Assaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hod Assaf Industries has no effect on the direction of Salomon A i.e., Salomon A and Hod Assaf go up and down completely randomly.
Pair Corralation between Salomon A and Hod Assaf
Assuming the 90 days trading horizon Salomon A is expected to generate 1.29 times less return on investment than Hod Assaf. But when comparing it to its historical volatility, Salomon A Angel is 1.12 times less risky than Hod Assaf. It trades about 0.28 of its potential returns per unit of risk. Hod Assaf Industries is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 389,900 in Hod Assaf Industries on September 1, 2024 and sell it today you would earn a total of 90,800 from holding Hod Assaf Industries or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salomon A Angel vs. Hod Assaf Industries
Performance |
| Timeline |
| Salomon A Angel |
| Hod Assaf Industries |
Salomon A and Hod Assaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salomon A and Hod Assaf
The main advantage of trading using opposite Salomon A and Hod Assaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salomon A position performs unexpectedly, Hod Assaf 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 Hod Assaf will offset losses from the drop in Hod Assaf's long position.| Salomon A vs. Kerur Holdings | Salomon A vs. Sano Brunos Enterprises | Salomon A vs. Al Bad Massuot Yitzhak |
| Hod Assaf vs. Amir Marketing and | Hod Assaf vs. Delek Automotive Systems | Hod Assaf vs. Brimag L | Hod Assaf vs. Oil Refineries |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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