Correlation Between Mivtach Shamir and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both Mivtach Shamir and Shagrir Group 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 Mivtach Shamir and Shagrir Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mivtach Shamir and Shagrir Group Vehicle, you can compare the effects of market volatilities on Mivtach Shamir and Shagrir Group 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 Mivtach Shamir with a short position of Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivtach Shamir and Shagrir Group.
Diversification Opportunities for Mivtach Shamir and Shagrir Group
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mivtach and Shagrir is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle and Mivtach Shamir 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 Mivtach Shamir are associated (or correlated) with Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of Mivtach Shamir i.e., Mivtach Shamir and Shagrir Group go up and down completely randomly.
Pair Corralation between Mivtach Shamir and Shagrir Group
Assuming the 90 days trading horizon Mivtach Shamir is expected to generate 0.88 times more return on investment than Shagrir Group. However, Mivtach Shamir is 1.13 times less risky than Shagrir Group. It trades about 0.11 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about 0.02 per unit of risk. If you would invest 787,031 in Mivtach Shamir on September 12, 2024 and sell it today you would earn a total of 987,969 from holding Mivtach Shamir or generate 125.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mivtach Shamir vs. Shagrir Group Vehicle
Performance |
| Timeline |
| Mivtach Shamir |
| Shagrir Group Vehicle |
Mivtach Shamir and Shagrir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivtach Shamir and Shagrir Group
The main advantage of trading using opposite Mivtach Shamir and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivtach Shamir position performs unexpectedly, Shagrir Group 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 Shagrir Group will offset losses from the drop in Shagrir Group's long position.| Mivtach Shamir vs. EN Shoham Business | Mivtach Shamir vs. Accel Solutions Group | Mivtach Shamir vs. Menif Financial Services | Mivtach Shamir vs. Rapac Communication Infrastructure |
| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Suny Cellular Communication | Shagrir Group vs. Rani Zim Shopping | Shagrir Group vs. Tadiran Hldg |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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