Correlation Between Sure Tech and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both Sure Tech and Shagrir Group 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 Shagrir Group 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 Shagrir Group Vehicle, you can compare the effects of market volatilities on Sure Tech and Shagrir Group 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 Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Shagrir Group.
Diversification Opportunities for Sure Tech and Shagrir Group
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sure and Shagrir is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle 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 Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of Sure Tech i.e., Sure Tech and Shagrir Group go up and down completely randomly.
Pair Corralation between Sure Tech and Shagrir Group
Assuming the 90 days trading horizon Sure Tech is expected to generate 9.23 times less return on investment than Shagrir Group. But when comparing it to its historical volatility, Sure Tech Investments LP is 2.32 times less risky than Shagrir Group. It trades about 0.05 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 110,900 in Shagrir Group Vehicle on September 1, 2024 and sell it today you would earn a total of 10,300 from holding Shagrir Group Vehicle or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sure Tech Investments LP vs. Shagrir Group Vehicle
Performance |
| Timeline |
| Sure Tech Investments |
| Shagrir Group Vehicle |
Sure Tech and Shagrir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sure Tech and Shagrir Group
The main advantage of trading using opposite Sure Tech and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sure Tech position performs unexpectedly, Shagrir Group 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 Shagrir Group will offset losses from the drop in Shagrir Group's long position.| Sure Tech vs. Technoplus Ventures | Sure Tech vs. Polyram Plastic Industries | Sure Tech vs. Tedea Technological Development | Sure Tech vs. Nrgene Technologies |
| Shagrir Group vs. Arad | Shagrir Group vs. Alony Hetz Properties | Shagrir Group vs. Airport City | Shagrir Group vs. Harel Insurance Investments |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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