Correlation Between Strauss and Savoreat
Can any of the company-specific risk be diversified away by investing in both Strauss and Savoreat 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 Strauss and Savoreat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strauss Group and Savoreat, you can compare the effects of market volatilities on Strauss and Savoreat 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 Strauss with a short position of Savoreat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strauss and Savoreat.
Diversification Opportunities for Strauss and Savoreat
Excellent diversification
The 3 months correlation between Strauss and Savoreat is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Strauss Group and Savoreat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savoreat and Strauss 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 Strauss Group are associated (or correlated) with Savoreat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savoreat has no effect on the direction of Strauss i.e., Strauss and Savoreat go up and down completely randomly.
Pair Corralation between Strauss and Savoreat
Assuming the 90 days trading horizon Strauss Group is expected to generate 0.38 times more return on investment than Savoreat. However, Strauss Group is 2.63 times less risky than Savoreat. It trades about -0.02 of its potential returns per unit of risk. Savoreat is currently generating about -0.06 per unit of risk. If you would invest 864,703 in Strauss Group on August 29, 2024 and sell it today you would lose (153,903) from holding Strauss Group or give up 17.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strauss Group vs. Savoreat
Performance |
| Timeline |
| Strauss Group |
| Savoreat |
Strauss and Savoreat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strauss and Savoreat
The main advantage of trading using opposite Strauss and Savoreat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strauss position performs unexpectedly, Savoreat 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 Savoreat will offset losses from the drop in Savoreat's long position.| Strauss vs. Shufersal | Strauss vs. Israel Discount Bank | Strauss vs. Bank Leumi Le Israel | Strauss vs. Azrieli Group |
| Savoreat vs. Isras Investment | Savoreat vs. Amot Investments | Savoreat vs. Feat Fund Investments | Savoreat vs. Opko Health |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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