Correlation Between Big Shopping and YH Dimri
Can any of the company-specific risk be diversified away by investing in both Big Shopping and YH Dimri 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 Big Shopping and YH Dimri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Shopping Centers and YH Dimri Construction, you can compare the effects of market volatilities on Big Shopping and YH Dimri 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 Big Shopping with a short position of YH Dimri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Shopping and YH Dimri.
Diversification Opportunities for Big Shopping and YH Dimri
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Big and DIMRI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Big Shopping Centers and YH Dimri Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YH Dimri Construction and Big Shopping 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 Big Shopping Centers are associated (or correlated) with YH Dimri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YH Dimri Construction has no effect on the direction of Big Shopping i.e., Big Shopping and YH Dimri go up and down completely randomly.
Pair Corralation between Big Shopping and YH Dimri
Assuming the 90 days trading horizon Big Shopping is expected to generate 1.72 times less return on investment than YH Dimri. But when comparing it to its historical volatility, Big Shopping Centers is 1.06 times less risky than YH Dimri. It trades about 0.06 of its potential returns per unit of risk. YH Dimri Construction is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,708,041 in YH Dimri Construction on August 25, 2024 and sell it today you would earn a total of 709,959 from holding YH Dimri Construction or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Shopping Centers vs. YH Dimri Construction
Performance |
| Timeline |
| Big Shopping Centers |
| YH Dimri Construction |
Big Shopping and YH Dimri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Shopping and YH Dimri
The main advantage of trading using opposite Big Shopping and YH Dimri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Shopping position performs unexpectedly, YH Dimri 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 YH Dimri will offset losses from the drop in YH Dimri's long position.| Big Shopping vs. Azrieli Group | Big Shopping vs. Melisron | Big Shopping vs. Amot Investments | Big Shopping vs. Alony Hetz Properties |
| YH Dimri vs. Israel Canada | YH Dimri vs. Azrieli Group | YH Dimri vs. Delek Group | YH Dimri vs. Shikun Binui |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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