Correlation Between Levinstein Eng and Shapir Engineering
Can any of the company-specific risk be diversified away by investing in both Levinstein Eng and Shapir Engineering 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 Levinstein Eng and Shapir Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinstein Eng and Shapir Engineering Industry, you can compare the effects of market volatilities on Levinstein Eng and Shapir Engineering 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 Levinstein Eng with a short position of Shapir Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinstein Eng and Shapir Engineering.
Diversification Opportunities for Levinstein Eng and Shapir Engineering
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Levinstein and Shapir is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Levinstein Eng and Shapir Engineering Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapir Engineering and Levinstein Eng 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 Levinstein Eng are associated (or correlated) with Shapir Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapir Engineering has no effect on the direction of Levinstein Eng i.e., Levinstein Eng and Shapir Engineering go up and down completely randomly.
Pair Corralation between Levinstein Eng and Shapir Engineering
Assuming the 90 days trading horizon Levinstein Eng is expected to generate 0.96 times more return on investment than Shapir Engineering. However, Levinstein Eng is 1.05 times less risky than Shapir Engineering. It trades about 0.05 of its potential returns per unit of risk. Shapir Engineering Industry is currently generating about 0.01 per unit of risk. If you would invest 2,731,927 in Levinstein Eng on August 28, 2024 and sell it today you would earn a total of 896,073 from holding Levinstein Eng or generate 32.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levinstein Eng vs. Shapir Engineering Industry
Performance |
| Timeline |
| Levinstein Eng |
| Shapir Engineering |
Levinstein Eng and Shapir Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinstein Eng and Shapir Engineering
The main advantage of trading using opposite Levinstein Eng and Shapir Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinstein Eng position performs unexpectedly, Shapir Engineering 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 Shapir Engineering will offset losses from the drop in Shapir Engineering's long position.| Levinstein Eng vs. Arad | Levinstein Eng vs. Alony Hetz Properties | Levinstein Eng vs. Danel | Levinstein Eng vs. Airport City |
| Shapir Engineering vs. Arad | Shapir Engineering vs. Alony Hetz Properties | Shapir Engineering vs. Danel | Shapir Engineering vs. Airport City |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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