Correlation Between Gan Shmuel and Salomon A
Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and Salomon A 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 Gan Shmuel and Salomon A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan Shmuel and Salomon A Angel, you can compare the effects of market volatilities on Gan Shmuel and Salomon A 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 Gan Shmuel with a short position of Salomon A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and Salomon A.
Diversification Opportunities for Gan Shmuel and Salomon A
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Salomon is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and Salomon A Angel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salomon A Angel and Gan Shmuel 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 Gan Shmuel are associated (or correlated) with Salomon A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salomon A Angel has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and Salomon A go up and down completely randomly.
Pair Corralation between Gan Shmuel and Salomon A
Assuming the 90 days trading horizon Gan Shmuel is expected to generate 3.04 times less return on investment than Salomon A. But when comparing it to its historical volatility, Gan Shmuel is 1.99 times less risky than Salomon A. It trades about 0.14 of its potential returns per unit of risk. Salomon A Angel is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 310,000 in Salomon A Angel on August 30, 2024 and sell it today you would earn a total of 40,600 from holding Salomon A Angel or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Shmuel vs. Salomon A Angel
Performance |
| Timeline |
| Gan Shmuel |
| Salomon A Angel |
Gan Shmuel and Salomon A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Shmuel and Salomon A
The main advantage of trading using opposite Gan Shmuel and Salomon A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Shmuel position performs unexpectedly, Salomon A 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 Salomon A will offset losses from the drop in Salomon A's long position.| Gan Shmuel vs. Neto ME Holdings | Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Salomon A Angel | Gan Shmuel vs. Sano Brunos Enterprises |
| Salomon A vs. Zanlakol | Salomon A vs. Gan Shmuel | Salomon A vs. Carmit | Salomon A vs. Sano Brunos Enterprises |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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