Correlation Between Big Shopping and Generation Capital
Can any of the company-specific risk be diversified away by investing in both Big Shopping and Generation Capital 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 Generation Capital 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 Generation Capital, you can compare the effects of market volatilities on Big Shopping and Generation Capital 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 Generation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Shopping and Generation Capital.
Diversification Opportunities for Big Shopping and Generation Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Big and Generation is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Big Shopping Centers and Generation Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Capital 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 Generation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Capital has no effect on the direction of Big Shopping i.e., Big Shopping and Generation Capital go up and down completely randomly.
Pair Corralation between Big Shopping and Generation Capital
Assuming the 90 days trading horizon Big Shopping Centers is expected to generate 0.64 times more return on investment than Generation Capital. However, Big Shopping Centers is 1.57 times less risky than Generation Capital. It trades about 0.28 of its potential returns per unit of risk. Generation Capital is currently generating about 0.15 per unit of risk. If you would invest 4,020,000 in Big Shopping Centers on November 2, 2024 and sell it today you would earn a total of 1,579,000 from holding Big Shopping Centers or generate 39.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.77% |
| Values | Daily Returns |
Big Shopping Centers vs. Generation Capital
Performance |
| Timeline |
| Big Shopping Centers |
| Generation Capital |
Big Shopping and Generation Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Shopping and Generation Capital
The main advantage of trading using opposite Big Shopping and Generation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Shopping position performs unexpectedly, Generation Capital 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 Generation Capital will offset losses from the drop in Generation Capital's long position.| Big Shopping vs. Azrieli Group | Big Shopping vs. Melisron | Big Shopping vs. Amot Investments | Big Shopping vs. Alony Hetz Properties |
| Generation Capital vs. EN Shoham Business | Generation Capital vs. Mivtach Shamir | Generation Capital vs. Enlight Renewable Energy | Generation Capital vs. Rani Zim Shopping |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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