Correlation Between Shufersal and AudioCodes
Can any of the company-specific risk be diversified away by investing in both Shufersal and AudioCodes 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 Shufersal and AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and AudioCodes, you can compare the effects of market volatilities on Shufersal and AudioCodes 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 Shufersal with a short position of AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and AudioCodes.
Diversification Opportunities for Shufersal and AudioCodes
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shufersal and AudioCodes is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes and Shufersal 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 Shufersal are associated (or correlated) with AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of Shufersal i.e., Shufersal and AudioCodes go up and down completely randomly.
Pair Corralation between Shufersal and AudioCodes
Assuming the 90 days trading horizon Shufersal is expected to generate 0.43 times more return on investment than AudioCodes. However, Shufersal is 2.35 times less risky than AudioCodes. It trades about 0.37 of its potential returns per unit of risk. AudioCodes is currently generating about -0.08 per unit of risk. If you would invest 331,700 in Shufersal on September 1, 2024 and sell it today you would earn a total of 32,500 from holding Shufersal or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. AudioCodes
Performance |
| Timeline |
| Shufersal |
| AudioCodes |
Shufersal and AudioCodes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and AudioCodes
The main advantage of trading using opposite Shufersal and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, AudioCodes 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 AudioCodes will offset losses from the drop in AudioCodes' long position.| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
| AudioCodes vs. Nice | AudioCodes vs. Tower Semiconductor | AudioCodes vs. Elbit Systems | AudioCodes vs. Nova |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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