Correlation Between Oron Group and Shikun Binui
Can any of the company-specific risk be diversified away by investing in both Oron Group and Shikun Binui 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 Oron Group and Shikun Binui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oron Group Investments and Shikun Binui, you can compare the effects of market volatilities on Oron Group and Shikun Binui 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 Oron Group with a short position of Shikun Binui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oron Group and Shikun Binui.
Diversification Opportunities for Oron Group and Shikun Binui
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oron and Shikun is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oron Group Investments and Shikun Binui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shikun Binui and Oron Group 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 Oron Group Investments are associated (or correlated) with Shikun Binui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shikun Binui has no effect on the direction of Oron Group i.e., Oron Group and Shikun Binui go up and down completely randomly.
Pair Corralation between Oron Group and Shikun Binui
Assuming the 90 days trading horizon Oron Group Investments is expected to generate 0.66 times more return on investment than Shikun Binui. However, Oron Group Investments is 1.51 times less risky than Shikun Binui. It trades about 0.42 of its potential returns per unit of risk. Shikun Binui is currently generating about -0.36 per unit of risk. If you would invest 100,800 in Oron Group Investments on November 4, 2024 and sell it today you would earn a total of 11,400 from holding Oron Group Investments or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oron Group Investments vs. Shikun Binui
Performance |
| Timeline |
| Oron Group Investments |
| Shikun Binui |
Oron Group and Shikun Binui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oron Group and Shikun Binui
The main advantage of trading using opposite Oron Group and Shikun Binui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oron Group position performs unexpectedly, Shikun Binui 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 Shikun Binui will offset losses from the drop in Shikun Binui's long position.| Oron Group vs. Shikun Binui | Oron Group vs. Ashtrom Group | Oron Group vs. Aura Investments | Oron Group vs. Shapir Engineering Industry |
| Shikun Binui vs. Israel Discount Bank | Shikun Binui vs. Bezeq Israeli Telecommunication | Shikun Binui vs. Azrieli Group | Shikun Binui vs. Bank Hapoalim |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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