Correlation Between Multi Retail and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Suny Cellular 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 Multi Retail and Suny Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Retail Group and Suny Cellular Communication, you can compare the effects of market volatilities on Multi Retail and Suny Cellular 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 Multi Retail with a short position of Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Suny Cellular.
Diversification Opportunities for Multi Retail and Suny Cellular
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi and Suny is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun and Multi Retail 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 Multi Retail Group are associated (or correlated) with Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Multi Retail i.e., Multi Retail and Suny Cellular go up and down completely randomly.
Pair Corralation between Multi Retail and Suny Cellular
Assuming the 90 days trading horizon Multi Retail is expected to generate 9.3 times less return on investment than Suny Cellular. In addition to that, Multi Retail is 1.03 times more volatile than Suny Cellular Communication. It trades about 0.02 of its total potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.23 per unit of volatility. If you would invest 10,510 in Suny Cellular Communication on September 1, 2024 and sell it today you would earn a total of 1,190 from holding Suny Cellular Communication or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Suny Cellular Communication
Performance |
| Timeline |
| Multi Retail Group |
| Suny Cellular Commun |
Multi Retail and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Suny Cellular
The main advantage of trading using opposite Multi Retail and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Multi Retail vs. Suny Cellular Communication | Multi Retail vs. Teuza A Fairchild | Multi Retail vs. Israel China Biotechnology | Multi Retail vs. B Communications |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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