Correlation Between Shagrir Group and Seach Medical
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Seach Medical 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 Seach Medical 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 Seach Medical Group, you can compare the effects of market volatilities on Shagrir Group and Seach Medical 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 Seach Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Seach Medical.
Diversification Opportunities for Shagrir Group and Seach Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shagrir and Seach is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Seach Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seach Medical Group 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 Seach Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seach Medical Group has no effect on the direction of Shagrir Group i.e., Shagrir Group and Seach Medical go up and down completely randomly.
Pair Corralation between Shagrir Group and Seach Medical
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 0.93 times more return on investment than Seach Medical. However, Shagrir Group Vehicle is 1.08 times less risky than Seach Medical. It trades about 0.41 of its potential returns per unit of risk. Seach Medical Group is currently generating about 0.04 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. Seach Medical Group
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Seach Medical Group |
Shagrir Group and Seach Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Seach Medical
The main advantage of trading using opposite Shagrir Group and Seach Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Seach Medical 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 Seach Medical will offset losses from the drop in Seach Medical'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 |
| Seach Medical vs. Rapac Communication Infrastructure | Seach Medical vs. Retailors | Seach Medical vs. Ram On Investments and | Seach Medical vs. Batm Advanced Communications |
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 Stocks Directory module to find actively traded stocks across global markets.
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