Correlation Between Shagrir Group and Formula
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Formula 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 Shagrir Group and Formula into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shagrir Group Vehicle and Formula, you can compare the effects of market volatilities on Shagrir Group and Formula 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 Shagrir Group with a short position of Formula. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Formula.
Diversification Opportunities for Shagrir Group and Formula
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shagrir and Formula is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Formula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formula and Shagrir Group 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 Shagrir Group Vehicle are associated (or correlated) with Formula. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formula has no effect on the direction of Shagrir Group i.e., Shagrir Group and Formula go up and down completely randomly.
Pair Corralation between Shagrir Group and Formula
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 1.01 times more return on investment than Formula. However, Shagrir Group is 1.01 times more volatile than Formula. It trades about 0.08 of its potential returns per unit of risk. Formula is currently generating about 0.06 per unit of risk. If you would invest 114,000 in Shagrir Group Vehicle on September 5, 2024 and sell it today you would earn a total of 3,800 from holding Shagrir Group Vehicle or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. Formula
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Formula |
Shagrir Group and Formula Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Formula
The main advantage of trading using opposite Shagrir Group and Formula positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Formula 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 Formula will offset losses from the drop in Formula's long position.| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Accel Solutions Group | Shagrir Group vs. Mivtach Shamir | Shagrir Group vs. Rani Zim Shopping |
| Formula vs. Palram | Formula vs. Shagrir Group Vehicle | Formula vs. EN Shoham Business | Formula 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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