Correlation Between Shoals Technologies and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Shoals Technologies and Israel Discount 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 Shoals Technologies and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoals Technologies Group and Israel Discount Bank, you can compare the effects of market volatilities on Shoals Technologies and Israel Discount 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 Shoals Technologies with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoals Technologies and Israel Discount.
Diversification Opportunities for Shoals Technologies and Israel Discount
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shoals and Israel is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shoals Technologies Group and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank and Shoals Technologies 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 Shoals Technologies Group are associated (or correlated) with Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Shoals Technologies i.e., Shoals Technologies and Israel Discount go up and down completely randomly.
Pair Corralation between Shoals Technologies and Israel Discount
Given the investment horizon of 90 days Shoals Technologies Group is expected to under-perform the Israel Discount. In addition to that, Shoals Technologies is 1.63 times more volatile than Israel Discount Bank. It trades about -0.07 of its total potential returns per unit of risk. Israel Discount Bank is currently generating about 0.07 per unit of volatility. If you would invest 4,547 in Israel Discount Bank on November 2, 2024 and sell it today you would earn a total of 1,653 from holding Israel Discount Bank or generate 36.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
Shoals Technologies Group vs. Israel Discount Bank
Performance |
| Timeline |
| Shoals Technologies |
| Israel Discount Bank |
Shoals Technologies and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoals Technologies and Israel Discount
The main advantage of trading using opposite Shoals Technologies and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoals Technologies position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.| Shoals Technologies vs. Array Technologies | Shoals Technologies vs. Sunnova Energy International | Shoals Technologies vs. Fluence Energy | Shoals Technologies vs. Playtika Holding Corp |
| Israel Discount vs. Baraboo Bancorporation | Israel Discount vs. Schweizerische Nationalbank | Israel Discount vs. Danske Bank AS | Israel Discount vs. Absa Group Limited |
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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