Correlation Between EN Shoham and Peninsula
Can any of the company-specific risk be diversified away by investing in both EN Shoham and Peninsula 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 EN Shoham and Peninsula into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EN Shoham Business and Peninsula Group, you can compare the effects of market volatilities on EN Shoham and Peninsula 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 EN Shoham with a short position of Peninsula. Check out your portfolio center. Please also check ongoing floating volatility patterns of EN Shoham and Peninsula.
Diversification Opportunities for EN Shoham and Peninsula
Almost no diversification
The 3 months correlation between SHOM and Peninsula is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding EN Shoham Business and Peninsula Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Group and EN Shoham 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 EN Shoham Business are associated (or correlated) with Peninsula. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Group has no effect on the direction of EN Shoham i.e., EN Shoham and Peninsula go up and down completely randomly.
Pair Corralation between EN Shoham and Peninsula
Assuming the 90 days trading horizon EN Shoham Business is expected to generate 1.25 times more return on investment than Peninsula. However, EN Shoham is 1.25 times more volatile than Peninsula Group. It trades about 0.33 of its potential returns per unit of risk. Peninsula Group is currently generating about 0.33 per unit of risk. If you would invest 59,580 in EN Shoham Business on September 1, 2024 and sell it today you would earn a total of 6,580 from holding EN Shoham Business or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EN Shoham Business vs. Peninsula Group
Performance |
| Timeline |
| EN Shoham Business |
| Peninsula Group |
EN Shoham and Peninsula Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EN Shoham and Peninsula
The main advantage of trading using opposite EN Shoham and Peninsula positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EN Shoham position performs unexpectedly, Peninsula 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 Peninsula will offset losses from the drop in Peninsula's long position.| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
| Peninsula vs. Opal Balance | Peninsula vs. Nawi Brothers Group | Peninsula vs. Mizrahi Tefahot | Peninsula vs. SR Accord |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |