Correlation Between Shufersal and Electra Real
Can any of the company-specific risk be diversified away by investing in both Shufersal and Electra Real 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 Electra Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Electra Real Estate, you can compare the effects of market volatilities on Shufersal and Electra Real 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 Electra Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Electra Real.
Diversification Opportunities for Shufersal and Electra Real
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shufersal and Electra is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Electra Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Real Estate 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 Electra Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Real Estate has no effect on the direction of Shufersal i.e., Shufersal and Electra Real go up and down completely randomly.
Pair Corralation between Shufersal and Electra Real
Assuming the 90 days trading horizon Shufersal is expected to generate 0.71 times more return on investment than Electra Real. However, Shufersal is 1.42 times less risky than Electra Real. It trades about 0.2 of its potential returns per unit of risk. Electra Real Estate is currently generating about 0.12 per unit of risk. If you would invest 331,000 in Shufersal on August 30, 2024 and sell it today you would earn a total of 26,100 from holding Shufersal or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Electra Real Estate
Performance |
| Timeline |
| Shufersal |
| Electra Real Estate |
Shufersal and Electra Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Electra Real
The main advantage of trading using opposite Shufersal and Electra Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Electra Real 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 Electra Real will offset losses from the drop in Electra Real's long position.| Shufersal vs. B Communications | Shufersal vs. Holmes Place International | Shufersal vs. Nova | Shufersal vs. Petrochemical |
| Electra Real vs. Azrieli Group | Electra Real vs. Israel Discount Bank | Electra Real vs. Alony Hetz Properties | Electra Real vs. Shufersal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |