Correlation Between Sarine Technologies and Hamama
Can any of the company-specific risk be diversified away by investing in both Sarine Technologies 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 Sarine Technologies and Hamama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarine Technologies and Hamama, you can compare the effects of market volatilities on Sarine Technologies 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 Sarine Technologies with a short position of Hamama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarine Technologies and Hamama.
Diversification Opportunities for Sarine Technologies and Hamama
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sarine and Hamama is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sarine Technologies and Hamama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamama and Sarine Technologies 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 Sarine Technologies 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 Sarine Technologies i.e., Sarine Technologies and Hamama go up and down completely randomly.
Pair Corralation between Sarine Technologies and Hamama
Assuming the 90 days trading horizon Sarine Technologies is expected to generate 0.72 times more return on investment than Hamama. However, Sarine Technologies is 1.38 times less risky than Hamama. It trades about -0.04 of its potential returns per unit of risk. Hamama is currently generating about -0.08 per unit of risk. If you would invest 6,650 in Sarine Technologies on August 30, 2024 and sell it today you would lose (260.00) from holding Sarine Technologies or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarine Technologies vs. Hamama
Performance |
| Timeline |
| Sarine Technologies |
| Hamama |
Sarine Technologies and Hamama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarine Technologies and Hamama
The main advantage of trading using opposite Sarine Technologies and Hamama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarine Technologies 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.| Sarine Technologies vs. YD More Investments | Sarine Technologies vs. Oron Group Investments | Sarine Technologies vs. Azorim Investment Development | Sarine Technologies vs. B Communications |
| Hamama vs. Retailors | Hamama vs. Harel Insurance Investments | Hamama vs. Isras Investment | Hamama vs. Bio Meat Foodtech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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