Correlation Between Shufersal and Malam Team
Can any of the company-specific risk be diversified away by investing in both Shufersal and Malam Team 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 Malam Team into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Malam Team, you can compare the effects of market volatilities on Shufersal and Malam Team 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 Malam Team. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Malam Team.
Diversification Opportunities for Shufersal and Malam Team
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shufersal and Malam is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Malam Team in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malam Team 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 Malam Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malam Team has no effect on the direction of Shufersal i.e., Shufersal and Malam Team go up and down completely randomly.
Pair Corralation between Shufersal and Malam Team
Assuming the 90 days trading horizon Shufersal is expected to generate 13.68 times less return on investment than Malam Team. But when comparing it to its historical volatility, Shufersal is 1.71 times less risky than Malam Team. It trades about 0.03 of its potential returns per unit of risk. Malam Team is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 886,000 in Malam Team on December 1, 2024 and sell it today you would earn a total of 77,400 from holding Malam Team or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Malam Team
Performance |
| Timeline |
| Shufersal |
| Malam Team |
Shufersal and Malam Team Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Malam Team
The main advantage of trading using opposite Shufersal and Malam Team positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Malam Team 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 Malam Team will offset losses from the drop in Malam Team's long position.| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |