Correlation Between Delek Automotive and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and EN Shoham 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 Delek Automotive and EN Shoham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and EN Shoham Business, you can compare the effects of market volatilities on Delek Automotive and EN Shoham 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 Delek Automotive with a short position of EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and EN Shoham.
Diversification Opportunities for Delek Automotive and EN Shoham
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delek and SHOM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business and Delek Automotive 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 Delek Automotive Systems are associated (or correlated) with EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of Delek Automotive i.e., Delek Automotive and EN Shoham go up and down completely randomly.
Pair Corralation between Delek Automotive and EN Shoham
Assuming the 90 days trading horizon Delek Automotive is expected to generate 1.78 times less return on investment than EN Shoham. In addition to that, Delek Automotive is 1.03 times more volatile than EN Shoham Business. It trades about 0.08 of its total potential returns per unit of risk. EN Shoham Business is currently generating about 0.14 per unit of volatility. If you would invest 37,330 in EN Shoham Business on September 14, 2024 and sell it today you would earn a total of 37,470 from holding EN Shoham Business or generate 100.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Automotive Systems vs. EN Shoham Business
Performance |
| Timeline |
| Delek Automotive Systems |
| EN Shoham Business |
Delek Automotive and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and EN Shoham
The main advantage of trading using opposite Delek Automotive and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham's long position.| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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