Correlation Between Shagrir Group and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Shagrir Group and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Suny Cellular.
Diversification Opportunities for Shagrir Group and Suny Cellular
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shagrir and Suny is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Shagrir Group i.e., Shagrir Group and Suny Cellular go up and down completely randomly.
Pair Corralation between Shagrir Group and Suny Cellular
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 1.1 times more return on investment than Suny Cellular. However, Shagrir Group is 1.1 times more volatile than Suny Cellular Communication. It trades about 0.14 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.11 per unit of risk. If you would invest 60,640 in Shagrir Group Vehicle on August 25, 2024 and sell it today you would earn a total of 49,960 from holding Shagrir Group Vehicle or generate 82.39% 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. Suny Cellular Communication
Performance |
| Timeline |
| Shagrir Group Vehicle |
| Suny Cellular Commun |
Shagrir Group and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and Suny Cellular
The main advantage of trading using opposite Shagrir Group and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Shagrir Group vs. Arad | Shagrir Group vs. Alony Hetz Properties | Shagrir Group vs. Danel | Shagrir Group vs. Airport City |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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