Correlation Between Shikun Binui and Melisron
Can any of the company-specific risk be diversified away by investing in both Shikun Binui and Melisron 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 Shikun Binui and Melisron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Melisron, you can compare the effects of market volatilities on Shikun Binui and Melisron 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 Shikun Binui with a short position of Melisron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Melisron.
Diversification Opportunities for Shikun Binui and Melisron
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shikun and Melisron is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Melisron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melisron and Shikun Binui 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 Shikun Binui are associated (or correlated) with Melisron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melisron has no effect on the direction of Shikun Binui i.e., Shikun Binui and Melisron go up and down completely randomly.
Pair Corralation between Shikun Binui and Melisron
Assuming the 90 days trading horizon Shikun Binui is expected to generate 1.6 times more return on investment than Melisron. However, Shikun Binui is 1.6 times more volatile than Melisron. It trades about 0.17 of its potential returns per unit of risk. Melisron is currently generating about 0.16 per unit of risk. If you would invest 91,500 in Shikun Binui on August 28, 2024 and sell it today you would earn a total of 17,300 from holding Shikun Binui or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Melisron
Performance |
| Timeline |
| Shikun Binui |
| Melisron |
Shikun Binui and Melisron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Melisron
The main advantage of trading using opposite Shikun Binui and Melisron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui position performs unexpectedly, Melisron 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 Melisron will offset losses from the drop in Melisron's long position.| Shikun Binui vs. Arad | Shikun Binui vs. Alony Hetz Properties | Shikun Binui vs. Danel | Shikun Binui vs. Airport City |
| Melisron vs. Israel Canada | Melisron vs. Delek Group | Melisron vs. Shikun Binui | Melisron vs. Israel Discount Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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