Correlation Between Shufersal and Hamama
Can any of the company-specific risk be diversified away by investing in both Shufersal and Hamama 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 Hamama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Hamama, you can compare the effects of market volatilities on Shufersal and Hamama 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 Hamama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Hamama.
Diversification Opportunities for Shufersal and Hamama
Excellent diversification
The 3 months correlation between Shufersal and Hamama is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Hamama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamama 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 Hamama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamama has no effect on the direction of Shufersal i.e., Shufersal and Hamama go up and down completely randomly.
Pair Corralation between Shufersal and Hamama
Assuming the 90 days trading horizon Shufersal is expected to generate 0.54 times more return on investment than Hamama. However, Shufersal is 1.85 times less risky than Hamama. It trades about 0.07 of its potential returns per unit of risk. Hamama is currently generating about -0.01 per unit of risk. If you would invest 212,049 in Shufersal on August 27, 2024 and sell it today you would earn a total of 132,851 from holding Shufersal or generate 62.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Hamama
Performance |
| Timeline |
| Shufersal |
| Hamama |
Shufersal and Hamama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Hamama
The main advantage of trading using opposite Shufersal and Hamama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Hamama 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 Hamama will offset losses from the drop in Hamama's long position.| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
| Hamama vs. Ormat Technologies | Hamama vs. Blender Financial Technologies | Hamama vs. Sarine Technologies | Hamama vs. Payment Financial Technologies |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |