Correlation Between Shikun Binui and Rimon Consulting
Can any of the company-specific risk be diversified away by investing in both Shikun Binui and Rimon Consulting 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 Rimon Consulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Rimon Consulting Management, you can compare the effects of market volatilities on Shikun Binui and Rimon Consulting 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 Rimon Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Rimon Consulting.
Diversification Opportunities for Shikun Binui and Rimon Consulting
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shikun and Rimon is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Rimon Consulting Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimon Consulting Man 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 Rimon Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimon Consulting Man has no effect on the direction of Shikun Binui i.e., Shikun Binui and Rimon Consulting go up and down completely randomly.
Pair Corralation between Shikun Binui and Rimon Consulting
Assuming the 90 days trading horizon Shikun Binui is expected to generate 0.6 times more return on investment than Rimon Consulting. However, Shikun Binui is 1.67 times less risky than Rimon Consulting. It trades about 0.72 of its potential returns per unit of risk. Rimon Consulting Management is currently generating about 0.32 per unit of risk. If you would invest 91,300 in Shikun Binui on August 25, 2024 and sell it today you would earn a total of 16,400 from holding Shikun Binui or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Rimon Consulting Management
Performance |
| Timeline |
| Shikun Binui |
| Rimon Consulting Man |
Shikun Binui and Rimon Consulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Rimon Consulting
The main advantage of trading using opposite Shikun Binui and Rimon Consulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui position performs unexpectedly, Rimon Consulting 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 Rimon Consulting will offset losses from the drop in Rimon Consulting'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 |
| Rimon Consulting vs. Shapir Engineering Industry | Rimon Consulting vs. Electra | Rimon Consulting vs. Shikun Binui | Rimon Consulting vs. Levinstein Eng |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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