Correlation Between Lesico and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Lesico 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 Lesico and EN Shoham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesico and EN Shoham Business, you can compare the effects of market volatilities on Lesico 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 Lesico with a short position of EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesico and EN Shoham.
Diversification Opportunities for Lesico and EN Shoham
Poor diversification
The 3 months correlation between Lesico and SHOM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lesico 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 Lesico 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 Lesico 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 Lesico i.e., Lesico and EN Shoham go up and down completely randomly.
Pair Corralation between Lesico and EN Shoham
Assuming the 90 days trading horizon Lesico is expected to generate 2.28 times more return on investment than EN Shoham. However, Lesico is 2.28 times more volatile than EN Shoham Business. It trades about 0.46 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.44 per unit of risk. If you would invest 30,190 in Lesico on September 3, 2024 and sell it today you would earn a total of 10,400 from holding Lesico or generate 34.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesico vs. EN Shoham Business
Performance |
| Timeline |
| Lesico |
| EN Shoham Business |
Lesico and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesico and EN Shoham
The main advantage of trading using opposite Lesico and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesico 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.| Lesico vs. EN Shoham Business | Lesico vs. Accel Solutions Group | Lesico vs. Mivtach Shamir | Lesico 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |