Correlation Between Shagrir Group and PCB Tec
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and PCB Tec 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 PCB Tec 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 PCB Tec, you can compare the effects of market volatilities on Shagrir Group and PCB Tec 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 PCB Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and PCB Tec.
Diversification Opportunities for Shagrir Group and PCB Tec
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shagrir and PCB is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and PCB Tec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCB Tec 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 PCB Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCB Tec has no effect on the direction of Shagrir Group i.e., Shagrir Group and PCB Tec go up and down completely randomly.
Pair Corralation between Shagrir Group and PCB Tec
Assuming the 90 days trading horizon Shagrir Group is expected to generate 3.92 times less return on investment than PCB Tec. But when comparing it to its historical volatility, Shagrir Group Vehicle is 1.49 times less risky than PCB Tec. It trades about 0.04 of its potential returns per unit of risk. PCB Tec is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 21,712 in PCB Tec on September 4, 2024 and sell it today you would earn a total of 48,028 from holding PCB Tec or generate 221.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. PCB Tec
Performance |
| Timeline |
| Shagrir Group Vehicle |
| PCB Tec |
Shagrir Group and PCB Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and PCB Tec
The main advantage of trading using opposite Shagrir Group and PCB Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, PCB Tec 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 PCB Tec will offset losses from the drop in PCB Tec'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 |
| PCB Tec vs. Palram | PCB Tec vs. Shagrir Group Vehicle | PCB Tec vs. EN Shoham Business | PCB Tec 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |