Correlation Between EN Shoham and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both EN Shoham and Shagrir Group 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 Shagrir Group 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 Shagrir Group Vehicle, you can compare the effects of market volatilities on EN Shoham and Shagrir Group 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 Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EN Shoham and Shagrir Group.
Diversification Opportunities for EN Shoham and Shagrir Group
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SHOM and Shagrir is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding EN Shoham Business and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle 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 Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of EN Shoham i.e., EN Shoham and Shagrir Group go up and down completely randomly.
Pair Corralation between EN Shoham and Shagrir Group
Assuming the 90 days trading horizon EN Shoham Business is expected to under-perform the Shagrir Group. But the stock apears to be less risky and, when comparing its historical volatility, EN Shoham Business is 1.15 times less risky than Shagrir Group. The stock trades about -0.1 of its potential returns per unit of risk. The Shagrir Group Vehicle is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 131,800 in Shagrir Group Vehicle on November 4, 2024 and sell it today you would earn a total of 8,200 from holding Shagrir Group Vehicle or generate 6.22% 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. Shagrir Group Vehicle
Performance |
| Timeline |
| EN Shoham Business |
| Shagrir Group Vehicle |
EN Shoham and Shagrir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EN Shoham and Shagrir Group
The main advantage of trading using opposite EN Shoham and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EN Shoham position performs unexpectedly, Shagrir Group 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 Shagrir Group will offset losses from the drop in Shagrir Group'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 |
| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Suny Cellular Communication | Shagrir Group vs. Rani Zim Shopping | Shagrir Group vs. Tadiran Hldg |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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