Correlation Between SR Accord and EN Shoham
Can any of the company-specific risk be diversified away by investing in both SR Accord and EN Shoham 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 SR Accord and EN Shoham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SR Accord and EN Shoham Business, you can compare the effects of market volatilities on SR Accord and EN Shoham 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 SR Accord with a short position of EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of SR Accord and EN Shoham.
Diversification Opportunities for SR Accord and EN Shoham
Almost no diversification
The 3 months correlation between SRAC and SHOM is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SR Accord and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business and SR Accord 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 SR Accord are associated (or correlated) with EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of SR Accord i.e., SR Accord and EN Shoham go up and down completely randomly.
Pair Corralation between SR Accord and EN Shoham
Assuming the 90 days trading horizon SR Accord is expected to generate 1.29 times less return on investment than EN Shoham. In addition to that, SR Accord is 1.06 times more volatile than EN Shoham Business. It trades about 0.04 of its total potential returns per unit of risk. EN Shoham Business is currently generating about 0.06 per unit of volatility. If you would invest 53,822 in EN Shoham Business on November 2, 2024 and sell it today you would earn a total of 33,328 from holding EN Shoham Business or generate 61.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SR Accord vs. EN Shoham Business
Performance |
| Timeline |
| SR Accord |
| EN Shoham Business |
SR Accord and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SR Accord and EN Shoham
The main advantage of trading using opposite SR Accord and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SR Accord position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham's long position.| SR Accord vs. EN Shoham Business | SR Accord vs. Rani Zim Shopping | SR Accord vs. Mivtach Shamir | SR Accord vs. Accel Solutions Group |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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