Correlation Between Skyline Investments and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Skyline Investments and Multi Retail 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 Skyline Investments and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investments and Multi Retail Group, you can compare the effects of market volatilities on Skyline Investments and Multi Retail 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 Skyline Investments with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investments and Multi Retail.
Diversification Opportunities for Skyline Investments and Multi Retail
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Skyline and Multi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investments and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group and Skyline Investments 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 Skyline Investments are associated (or correlated) with Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Skyline Investments i.e., Skyline Investments and Multi Retail go up and down completely randomly.
Pair Corralation between Skyline Investments and Multi Retail
Assuming the 90 days trading horizon Skyline Investments is expected to generate 6.07 times less return on investment than Multi Retail. But when comparing it to its historical volatility, Skyline Investments is 1.56 times less risky than Multi Retail. It trades about 0.07 of its potential returns per unit of risk. Multi Retail Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 47,880 in Multi Retail Group on August 29, 2024 and sell it today you would earn a total of 59,820 from holding Multi Retail Group or generate 124.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skyline Investments vs. Multi Retail Group
Performance |
| Timeline |
| Skyline Investments |
| Multi Retail Group |
Skyline Investments and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skyline Investments and Multi Retail
The main advantage of trading using opposite Skyline Investments and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investments position performs unexpectedly, Multi Retail 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 Multi Retail will offset losses from the drop in Multi Retail's long position.| Skyline Investments vs. Israel Canada | Skyline Investments vs. Delek Group | Skyline Investments vs. Shikun Binui | Skyline Investments vs. Israel Discount Bank |
| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Bezeq Israeli Telecommunication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |