Correlation Between Shagrir Group and Nissan
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Nissan 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 Nissan 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 Nissan, you can compare the effects of market volatilities on Shagrir Group and Nissan 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 Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Nissan.
Diversification Opportunities for Shagrir Group and Nissan
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shagrir and Nissan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Nissan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan 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 Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan has no effect on the direction of Shagrir Group i.e., Shagrir Group and Nissan go up and down completely randomly.
Pair Corralation between Shagrir Group and Nissan
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 0.79 times more return on investment than Nissan. However, Shagrir Group Vehicle is 1.27 times less risky than Nissan. It trades about 0.28 of its potential returns per unit of risk. Nissan is currently generating about 0.06 per unit of risk. If you would invest 87,740 in Shagrir Group Vehicle on September 5, 2024 and sell it today you would earn a total of 29,760 from holding Shagrir Group Vehicle or generate 33.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. Nissan
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Nissan |
Shagrir Group and Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Nissan
The main advantage of trading using opposite Shagrir Group and Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Nissan 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 Nissan will offset losses from the drop in Nissan'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 |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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