Correlation Between Sure Tech and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Sure Tech 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 Sure Tech and Multi Retail 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 Multi Retail Group, you can compare the effects of market volatilities on Sure Tech 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 Sure Tech with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Multi Retail.
Diversification Opportunities for Sure Tech and Multi Retail
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sure and Multi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP 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 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 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 Sure Tech i.e., Sure Tech and Multi Retail go up and down completely randomly.
Pair Corralation between Sure Tech and Multi Retail
Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Multi Retail. But the stock apears to be less risky and, when comparing its historical volatility, Sure Tech Investments LP is 1.12 times less risky than Multi Retail. The stock trades about -0.19 of its potential returns per unit of risk. The Multi Retail Group is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 113,900 in Multi Retail Group on October 24, 2024 and sell it today you would earn a total of 15,600 from holding Multi Retail Group or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sure Tech Investments LP vs. Multi Retail Group
Performance |
| Timeline |
| Sure Tech Investments |
| Multi Retail Group |
Sure Tech and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sure Tech and Multi Retail
The main advantage of trading using opposite Sure Tech and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sure Tech 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.| Sure Tech vs. Sofwave Medical | Sure Tech vs. Netz Hotels | Sure Tech vs. Willy Food | Sure Tech vs. Shagrir Group Vehicle |
| Multi Retail vs. Isras Investment | Multi Retail vs. Oron Group Investments | Multi Retail vs. Altshuler Shaham Financial | Multi Retail vs. Arad Investment Industrial |
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 Stocks Directory module to find actively traded stocks across global markets.
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