Correlation Between Neto Malinda and Shufersal
Can any of the company-specific risk be diversified away by investing in both Neto Malinda and Shufersal 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 Neto Malinda and Shufersal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neto Malinda and Shufersal, you can compare the effects of market volatilities on Neto Malinda and Shufersal 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 Neto Malinda with a short position of Shufersal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neto Malinda and Shufersal.
Diversification Opportunities for Neto Malinda and Shufersal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Neto and Shufersal is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Neto Malinda and Shufersal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shufersal and Neto Malinda 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 Neto Malinda are associated (or correlated) with Shufersal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shufersal has no effect on the direction of Neto Malinda i.e., Neto Malinda and Shufersal go up and down completely randomly.
Pair Corralation between Neto Malinda and Shufersal
Assuming the 90 days trading horizon Neto Malinda is expected to under-perform the Shufersal. In addition to that, Neto Malinda is 1.33 times more volatile than Shufersal. It trades about 0.0 of its total potential returns per unit of risk. Shufersal is currently generating about 0.09 per unit of volatility. If you would invest 207,962 in Shufersal on September 3, 2024 and sell it today you would earn a total of 156,238 from holding Shufersal or generate 75.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neto Malinda vs. Shufersal
Performance |
| Timeline |
| Neto Malinda |
| Shufersal |
Neto Malinda and Shufersal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neto Malinda and Shufersal
The main advantage of trading using opposite Neto Malinda and Shufersal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neto Malinda position performs unexpectedly, Shufersal 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 Shufersal will offset losses from the drop in Shufersal's long position.| Neto Malinda vs. Shufersal | Neto Malinda vs. Rami Levi | Neto Malinda vs. Strauss Group | Neto Malinda vs. Kerur Holdings |
| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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