Correlation Between Analyst IMS and Altshuler Shaham
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Altshuler Shaham 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 Analyst IMS and Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analyst IMS Investment and Altshuler Shaham Financial, you can compare the effects of market volatilities on Analyst IMS and Altshuler Shaham 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 Analyst IMS with a short position of Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Altshuler Shaham.
Diversification Opportunities for Analyst IMS and Altshuler Shaham
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Analyst and Altshuler is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin and Analyst IMS 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 Analyst IMS Investment are associated (or correlated) with Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Analyst IMS i.e., Analyst IMS and Altshuler Shaham go up and down completely randomly.
Pair Corralation between Analyst IMS and Altshuler Shaham
Assuming the 90 days trading horizon Analyst IMS is expected to generate 1.74 times less return on investment than Altshuler Shaham. But when comparing it to its historical volatility, Analyst IMS Investment is 1.6 times less risky than Altshuler Shaham. It trades about 0.29 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 49,367 in Altshuler Shaham Financial on August 29, 2024 and sell it today you would earn a total of 18,113 from holding Altshuler Shaham Financial or generate 36.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. Altshuler Shaham Financial
Performance |
| Timeline |
| Analyst IMS Investment |
| Altshuler Shaham Fin |
Analyst IMS and Altshuler Shaham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and Altshuler Shaham
The main advantage of trading using opposite Analyst IMS and Altshuler Shaham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, Altshuler Shaham 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 Altshuler Shaham will offset losses from the drop in Altshuler Shaham's long position.| Analyst IMS vs. Elbit Systems | Analyst IMS vs. Discount Investment Corp | Analyst IMS vs. Clal Insurance Enterprises | Analyst IMS vs. AudioCodes |
| Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. YD More Investments | Altshuler Shaham vs. Analyst IMS Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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