Correlation Between Tel Aviv and Silver Castle
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and Silver Castle 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 Tel Aviv and Silver Castle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tel Aviv 35 and Silver Castle Holdings, you can compare the effects of market volatilities on Tel Aviv and Silver Castle 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 Tel Aviv with a short position of Silver Castle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Silver Castle.
Diversification Opportunities for Tel Aviv and Silver Castle
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tel and Silver is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Silver Castle Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Castle Holdings and Tel Aviv 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 Tel Aviv 35 are associated (or correlated) with Silver Castle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Castle Holdings has no effect on the direction of Tel Aviv i.e., Tel Aviv and Silver Castle go up and down completely randomly.
Pair Corralation between Tel Aviv and Silver Castle
Assuming the 90 days trading horizon Tel Aviv is expected to generate 3.45 times less return on investment than Silver Castle. But when comparing it to its historical volatility, Tel Aviv 35 is 8.61 times less risky than Silver Castle. It trades about 0.08 of its potential returns per unit of risk. Silver Castle Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 67,440 in Silver Castle Holdings on September 4, 2024 and sell it today you would lose (8,030) from holding Silver Castle Holdings or give up 11.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Silver Castle Holdings
Performance |
| Timeline |
Tel Aviv and Silver Castle Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Silver Castle Holdings
Pair trading matchups for Silver Castle
Pair Trading with Tel Aviv and Silver Castle
The main advantage of trading using opposite Tel Aviv and Silver Castle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Silver Castle 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 Silver Castle will offset losses from the drop in Silver Castle's long position.| Tel Aviv vs. Clal Biotechnology Industries | Tel Aviv vs. MEITAV INVESTMENTS HOUSE | Tel Aviv vs. Abra Information Technologies | Tel Aviv vs. Millennium Food Tech LP |
| Silver Castle vs. Adgar Investments and | Silver Castle vs. Hiron Trade Investments Industrial | Silver Castle vs. Arad Investment Industrial | Silver Castle vs. Isras Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |