Correlation Between Tel Aviv and Zur Shamir
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and Zur 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 Tel Aviv and Zur Shamir 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 Zur Shamir Holdings, you can compare the effects of market volatilities on Tel Aviv and Zur 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 Tel Aviv with a short position of Zur Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Zur Shamir.
Diversification Opportunities for Tel Aviv and Zur Shamir
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tel and Zur is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Zur Shamir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zur Shamir 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 Zur Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zur Shamir Holdings has no effect on the direction of Tel Aviv i.e., Tel Aviv and Zur Shamir go up and down completely randomly.
Pair Corralation between Tel Aviv and Zur Shamir
Assuming the 90 days trading horizon Tel Aviv is expected to generate 1.74 times less return on investment than Zur Shamir. But when comparing it to its historical volatility, Tel Aviv 35 is 1.84 times less risky than Zur Shamir. It trades about 0.11 of its potential returns per unit of risk. Zur Shamir Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 52,238 in Zur Shamir Holdings on August 25, 2024 and sell it today you would earn a total of 18,432 from holding Zur Shamir Holdings or generate 35.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Zur Shamir Holdings
Performance |
| Timeline |
Tel Aviv and Zur Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Zur Shamir Holdings
Pair trading matchups for Zur Shamir
Pair Trading with Tel Aviv and Zur Shamir
The main advantage of trading using opposite Tel Aviv and Zur Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Zur 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 Zur Shamir will offset losses from the drop in Zur Shamir's long position.| Tel Aviv vs. Feat Fund Investments | Tel Aviv vs. Libra Insurance | Tel Aviv vs. Blender Financial Technologies | Tel Aviv vs. Clal Insurance Enterprises |
| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir vs. Shikun Binui |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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