Correlation Between Shikun Binui and Zur Shamir
Can any of the company-specific risk be diversified away by investing in both Shikun Binui and Zur Shamir 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 Zur Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Zur Shamir Holdings, you can compare the effects of market volatilities on Shikun Binui and Zur Shamir 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 Zur Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Zur Shamir.
Diversification Opportunities for Shikun Binui and Zur Shamir
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shikun and Zur is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Zur Shamir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zur Shamir Holdings 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 Zur Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zur Shamir Holdings has no effect on the direction of Shikun Binui i.e., Shikun Binui and Zur Shamir go up and down completely randomly.
Pair Corralation between Shikun Binui and Zur Shamir
Assuming the 90 days trading horizon Shikun Binui is expected to generate 1.85 times more return on investment than Zur Shamir. However, Shikun Binui is 1.85 times more volatile than Zur Shamir Holdings. It trades about 0.38 of its potential returns per unit of risk. Zur Shamir Holdings is currently generating about 0.35 per unit of risk. If you would invest 82,750 in Shikun Binui on August 25, 2024 and sell it today you would earn a total of 24,950 from holding Shikun Binui or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Zur Shamir Holdings
Performance |
| Timeline |
| Shikun Binui |
| Zur Shamir Holdings |
Shikun Binui and Zur Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Zur Shamir
The main advantage of trading using opposite Shikun Binui and Zur Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui position performs unexpectedly, Zur Shamir 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 Zur Shamir will offset losses from the drop in Zur Shamir'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 |
| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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