Correlation Between Shagrir Group and Tel Aviv
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Tel Aviv 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 Tel Aviv 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 Tel Aviv 35, you can compare the effects of market volatilities on Shagrir Group and Tel Aviv 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 Tel Aviv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Tel Aviv.
Diversification Opportunities for Shagrir Group and Tel Aviv
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shagrir and Tel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Tel Aviv 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tel Aviv 35 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 Tel Aviv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tel Aviv 35 has no effect on the direction of Shagrir Group i.e., Shagrir Group and Tel Aviv go up and down completely randomly.
Pair Corralation between Shagrir Group and Tel Aviv
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to generate 2.14 times more return on investment than Tel Aviv. However, Shagrir Group is 2.14 times more volatile than Tel Aviv 35. It trades about 0.14 of its potential returns per unit of risk. Tel Aviv 35 is currently generating about 0.12 per unit of risk. If you would invest 92,690 in Shagrir Group Vehicle on August 31, 2024 and sell it today you would earn a total of 28,510 from holding Shagrir Group Vehicle or generate 30.76% 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. Tel Aviv 35
Performance |
| Timeline |
Shagrir Group and Tel Aviv Volatility Contrast
Predicted Return Density |
| Returns |
Shagrir Group Vehicle
Pair trading matchups for Shagrir Group
Tel Aviv 35
Pair trading matchups for Tel Aviv
Pair Trading with Shagrir Group and Tel Aviv
The main advantage of trading using opposite Shagrir Group and Tel Aviv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Tel Aviv 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 Tel Aviv will offset losses from the drop in Tel Aviv'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 |
| Tel Aviv vs. Clal Insurance Enterprises | Tel Aviv vs. Meitav Trade Inv | Tel Aviv vs. One Software Technologies | Tel Aviv vs. Wesure Global Tech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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