Correlation Between Shufersal and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Shufersal and Suny Cellular 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 Suny Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shufersal and Suny Cellular Communication, you can compare the effects of market volatilities on Shufersal and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shufersal and Suny Cellular.
Diversification Opportunities for Shufersal and Suny Cellular
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shufersal and Suny is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shufersal and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Shufersal i.e., Shufersal and Suny Cellular go up and down completely randomly.
Pair Corralation between Shufersal and Suny Cellular
Assuming the 90 days trading horizon Shufersal is expected to generate 0.61 times more return on investment than Suny Cellular. However, Shufersal is 1.65 times less risky than Suny Cellular. It trades about -0.03 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about -0.06 per unit of risk. If you would invest 376,600 in Shufersal on November 29, 2024 and sell it today you would lose (3,700) from holding Shufersal or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shufersal vs. Suny Cellular Communication
Performance |
| Timeline |
| Shufersal |
| Suny Cellular Commun |
Shufersal and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shufersal and Suny Cellular
The main advantage of trading using opposite Shufersal and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shufersal position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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