Correlation Between Sure Tech and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Sure Tech and Mivtach 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 Sure Tech and Mivtach Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sure Tech Investments LP and Mivtach Shamir, you can compare the effects of market volatilities on Sure Tech and Mivtach 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 Sure Tech with a short position of Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Mivtach Shamir.
Diversification Opportunities for Sure Tech and Mivtach Shamir
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sure and Mivtach is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Mivtach Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivtach Shamir has no effect on the direction of Sure Tech i.e., Sure Tech and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Sure Tech and Mivtach Shamir
Assuming the 90 days trading horizon Sure Tech is expected to generate 20.7 times less return on investment than Mivtach Shamir. But when comparing it to its historical volatility, Sure Tech Investments LP is 1.74 times less risky than Mivtach Shamir. It trades about 0.03 of its potential returns per unit of risk. Mivtach Shamir is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,215,000 in Mivtach Shamir on November 22, 2024 and sell it today you would earn a total of 255,000 from holding Mivtach Shamir or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sure Tech Investments LP vs. Mivtach Shamir
Performance |
| Timeline |
| Sure Tech Investments |
| Mivtach Shamir |
Sure Tech and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sure Tech and Mivtach Shamir
The main advantage of trading using opposite Sure Tech and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sure Tech position performs unexpectedly, Mivtach 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 Mivtach Shamir will offset losses from the drop in Mivtach Shamir's long position.| Sure Tech vs. YH Dimri Construction | Sure Tech vs. Ilex Medical | Sure Tech vs. Sofwave Medical | Sure Tech vs. Electreon Wireless |
| Mivtach Shamir vs. EN Shoham Business | Mivtach Shamir vs. Accel Solutions Group | Mivtach Shamir vs. Menif Financial Services | Mivtach Shamir vs. Rapac Communication Infrastructure |
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 CEOs Directory module to screen CEOs from public companies around the world.
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