Correlation Between Shagrir Group and Malam Team
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Malam Team 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 Malam Team 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 Malam Team, you can compare the effects of market volatilities on Shagrir Group and Malam Team 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 Malam Team. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Malam Team.
Diversification Opportunities for Shagrir Group and Malam Team
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shagrir and Malam is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Malam Team in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malam Team 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 Malam Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malam Team has no effect on the direction of Shagrir Group i.e., Shagrir Group and Malam Team go up and down completely randomly.
Pair Corralation between Shagrir Group and Malam Team
Assuming the 90 days trading horizon Shagrir Group is expected to generate 1.22 times less return on investment than Malam Team. In addition to that, Shagrir Group is 1.14 times more volatile than Malam Team. It trades about 0.01 of its total potential returns per unit of risk. Malam Team is currently generating about 0.01 per unit of volatility. If you would invest 787,868 in Malam Team on September 3, 2024 and sell it today you would earn a total of 5,332 from holding Malam Team or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. Malam Team
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Malam Team |
Shagrir Group and Malam Team Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Malam Team
The main advantage of trading using opposite Shagrir Group and Malam Team positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Malam Team 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 Malam Team will offset losses from the drop in Malam Team'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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