Correlation Between Shufersal and Golf
Can any of the company-specific risk be diversified away by investing in both Shufersal and Golf 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 Golf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Golf Co Group, you can compare the effects of market volatilities on Shufersal and Golf 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 Golf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Golf.
Diversification Opportunities for Shufersal and Golf
Almost no diversification
The 3 months correlation between Shufersal and Golf is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Golf Co Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golf Co Group 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 Golf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golf Co Group has no effect on the direction of Shufersal i.e., Shufersal and Golf go up and down completely randomly.
Pair Corralation between Shufersal and Golf
Assuming the 90 days trading horizon Shufersal is expected to generate 1.38 times less return on investment than Golf. But when comparing it to its historical volatility, Shufersal is 1.46 times less risky than Golf. It trades about 0.24 of its potential returns per unit of risk. Golf Co Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 37,940 in Golf Co Group on August 30, 2024 and sell it today you would earn a total of 24,470 from holding Golf Co Group or generate 64.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Golf Co Group
Performance |
| Timeline |
| Shufersal |
| Golf Co Group |
Shufersal and Golf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Golf
The main advantage of trading using opposite Shufersal and Golf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Golf 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 Golf will offset losses from the drop in Golf's long position.| Shufersal vs. B Communications | Shufersal vs. Holmes Place International | Shufersal vs. Nova | Shufersal vs. Petrochemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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