Correlation Between Salomon A and Kerur Holdings
Can any of the company-specific risk be diversified away by investing in both Salomon A and Kerur Holdings 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 Kerur Holdings 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 Kerur Holdings, you can compare the effects of market volatilities on Salomon A and Kerur Holdings 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 Kerur Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salomon A and Kerur Holdings.
Diversification Opportunities for Salomon A and Kerur Holdings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salomon and Kerur is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Salomon A Angel and Kerur Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerur Holdings 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 Kerur Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerur Holdings has no effect on the direction of Salomon A i.e., Salomon A and Kerur Holdings go up and down completely randomly.
Pair Corralation between Salomon A and Kerur Holdings
Assuming the 90 days trading horizon Salomon A is expected to generate 3.15 times less return on investment than Kerur Holdings. In addition to that, Salomon A is 1.88 times more volatile than Kerur Holdings. It trades about 0.01 of its total potential returns per unit of risk. Kerur Holdings is currently generating about 0.04 per unit of volatility. If you would invest 668,143 in Kerur Holdings on November 27, 2024 and sell it today you would earn a total of 137,557 from holding Kerur Holdings or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salomon A Angel vs. Kerur Holdings
Performance |
| Timeline |
| Salomon A Angel |
| Kerur Holdings |
Salomon A and Kerur Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salomon A and Kerur Holdings
The main advantage of trading using opposite Salomon A and Kerur Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salomon A position performs unexpectedly, Kerur Holdings 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 Kerur Holdings will offset losses from the drop in Kerur Holdings' long position.| Salomon A vs. Zanlakol | Salomon A vs. Gan Shmuel | Salomon A vs. Carmit | Salomon A vs. Sano Brunos Enterprises |
| Kerur Holdings vs. Neto ME Holdings | Kerur Holdings vs. Scope Metals Group | Kerur Holdings vs. Delek Automotive Systems | Kerur Holdings vs. Aryt Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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