Correlation Between Generation Capital and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Generation Capital 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 Generation Capital and EN Shoham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Capital and EN Shoham Business, you can compare the effects of market volatilities on Generation Capital 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 Generation Capital with a short position of EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Capital and EN Shoham.
Diversification Opportunities for Generation Capital and EN Shoham
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Generation and SHOM is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Generation Capital 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 Generation Capital 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 Generation Capital 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 Generation Capital i.e., Generation Capital and EN Shoham go up and down completely randomly.
Pair Corralation between Generation Capital and EN Shoham
Assuming the 90 days trading horizon Generation Capital is expected to generate 3.16 times less return on investment than EN Shoham. But when comparing it to its historical volatility, Generation Capital is 1.15 times less risky than EN Shoham. It trades about 0.16 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 56,580 in EN Shoham Business on August 29, 2024 and sell it today you would earn a total of 9,150 from holding EN Shoham Business or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Capital vs. EN Shoham Business
Performance |
| Timeline |
| Generation Capital |
| EN Shoham Business |
Generation Capital and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Capital and EN Shoham
The main advantage of trading using opposite Generation Capital and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Capital 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.| Generation Capital vs. EN Shoham Business | Generation Capital vs. Mivtach Shamir | Generation Capital vs. Enlight Renewable Energy | Generation Capital vs. Rani Zim Shopping |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |