Correlation Between Photomyne and Shemen Industries
Can any of the company-specific risk be diversified away by investing in both Photomyne and Shemen Industries 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 Photomyne and Shemen Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photomyne and Shemen Industries, you can compare the effects of market volatilities on Photomyne and Shemen Industries 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 Photomyne with a short position of Shemen Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photomyne and Shemen Industries.
Diversification Opportunities for Photomyne and Shemen Industries
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Photomyne and Shemen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Photomyne and Shemen Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shemen Industries and Photomyne 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 Photomyne are associated (or correlated) with Shemen Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shemen Industries has no effect on the direction of Photomyne i.e., Photomyne and Shemen Industries go up and down completely randomly.
Pair Corralation between Photomyne and Shemen Industries
Assuming the 90 days trading horizon Photomyne is expected to generate 1.08 times more return on investment than Shemen Industries. However, Photomyne is 1.08 times more volatile than Shemen Industries. It trades about 0.07 of its potential returns per unit of risk. Shemen Industries is currently generating about -0.09 per unit of risk. If you would invest 226,600 in Photomyne on August 27, 2024 and sell it today you would earn a total of 51,000 from holding Photomyne or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Photomyne vs. Shemen Industries
Performance |
| Timeline |
| Photomyne |
| Shemen Industries |
Photomyne and Shemen Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photomyne and Shemen Industries
The main advantage of trading using opposite Photomyne and Shemen Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photomyne position performs unexpectedly, Shemen Industries 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 Shemen Industries will offset losses from the drop in Shemen Industries' long position.| Photomyne vs. Suny Cellular Communication | Photomyne vs. Amot Investments | Photomyne vs. Hiron Trade Investments Industrial | Photomyne vs. Silver Castle Holdings |
| Shemen Industries vs. Rami Levi | Shemen Industries vs. Kerur Holdings | Shemen Industries vs. M Yochananof and |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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