Correlation Between Shufersal and Nawi Brothers
Can any of the company-specific risk be diversified away by investing in both Shufersal and Nawi Brothers 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 Nawi Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Nawi Brothers Group, you can compare the effects of market volatilities on Shufersal and Nawi Brothers 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 Nawi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Nawi Brothers.
Diversification Opportunities for Shufersal and Nawi Brothers
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shufersal and Nawi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Nawi Brothers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawi Brothers 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 Nawi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawi Brothers Group has no effect on the direction of Shufersal i.e., Shufersal and Nawi Brothers go up and down completely randomly.
Pair Corralation between Shufersal and Nawi Brothers
Assuming the 90 days trading horizon Shufersal is expected to generate 1.03 times more return on investment than Nawi Brothers. However, Shufersal is 1.03 times more volatile than Nawi Brothers Group. It trades about 0.08 of its potential returns per unit of risk. Nawi Brothers Group is currently generating about 0.06 per unit of risk. If you would invest 209,811 in Shufersal on August 26, 2024 and sell it today you would earn a total of 135,089 from holding Shufersal or generate 64.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Nawi Brothers Group
Performance |
| Timeline |
| Shufersal |
| Nawi Brothers Group |
Shufersal and Nawi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Nawi Brothers
The main advantage of trading using opposite Shufersal and Nawi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Nawi Brothers 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 Nawi Brothers will offset losses from the drop in Nawi Brothers' long position.| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
| Nawi Brothers vs. Isracard | Nawi Brothers vs. Bank Hapoalim | Nawi Brothers vs. Tadiran Hldg | Nawi Brothers vs. Mizrahi Tefahot |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| 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 | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |