Correlation Between Shagrir Group and Libra Insurance
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Libra Insurance 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 Libra Insurance 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 Libra Insurance, you can compare the effects of market volatilities on Shagrir Group and Libra Insurance 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 Libra Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Libra Insurance.
Diversification Opportunities for Shagrir Group and Libra Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shagrir and Libra is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Libra Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libra Insurance 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 Libra Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libra Insurance has no effect on the direction of Shagrir Group i.e., Shagrir Group and Libra Insurance go up and down completely randomly.
Pair Corralation between Shagrir Group and Libra Insurance
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 1.04 times more return on investment than Libra Insurance. However, Shagrir Group is 1.04 times more volatile than Libra Insurance. It trades about 0.41 of its potential returns per unit of risk. Libra Insurance is currently generating about 0.06 per unit of risk. If you would invest 124,400 in Shagrir Group Vehicle on October 24, 2024 and sell it today you would earn a total of 18,700 from holding Shagrir Group Vehicle or generate 15.03% 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. Libra Insurance
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Libra Insurance |
Shagrir Group and Libra Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Libra Insurance
The main advantage of trading using opposite Shagrir Group and Libra Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Libra Insurance 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 Libra Insurance will offset losses from the drop in Libra Insurance's long position.| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Suny Cellular Communication | Shagrir Group vs. Rani Zim Shopping | Shagrir Group vs. Tadiran Hldg |
| Libra Insurance vs. Scope Metals Group | Libra Insurance vs. Computer Direct | Libra Insurance vs. Shagrir Group Vehicle | Libra Insurance vs. Victory Supermarket Chain |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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