Correlation Between Shikun Binui and Opal Balance
Can any of the company-specific risk be diversified away by investing in both Shikun Binui and Opal Balance 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 Opal Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Opal Balance, you can compare the effects of market volatilities on Shikun Binui and Opal Balance 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 Opal Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Opal Balance.
Diversification Opportunities for Shikun Binui and Opal Balance
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shikun and Opal is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Opal Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opal Balance 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 Opal Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opal Balance has no effect on the direction of Shikun Binui i.e., Shikun Binui and Opal Balance go up and down completely randomly.
Pair Corralation between Shikun Binui and Opal Balance
Assuming the 90 days trading horizon Shikun Binui is expected to under-perform the Opal Balance. In addition to that, Shikun Binui is 1.91 times more volatile than Opal Balance. It trades about -0.08 of its total potential returns per unit of risk. Opal Balance is currently generating about 0.16 per unit of volatility. If you would invest 23,270 in Opal Balance on November 27, 2024 and sell it today you would earn a total of 1,280 from holding Opal Balance or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Opal Balance
Performance |
| Timeline |
| Shikun Binui |
| Opal Balance |
Shikun Binui and Opal Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Opal Balance
The main advantage of trading using opposite Shikun Binui and Opal Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui position performs unexpectedly, Opal Balance 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 Opal Balance will offset losses from the drop in Opal Balance's long position.| Shikun Binui vs. Israel Discount Bank | Shikun Binui vs. Bezeq Israeli Telecommunication | Shikun Binui vs. Azrieli Group | Shikun Binui vs. Bank Hapoalim |
| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |