Correlation Between Zur Shamir and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both Zur Shamir and Kenon Holdings 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 Zur Shamir and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zur Shamir Holdings and Kenon Holdings, you can compare the effects of market volatilities on Zur Shamir and Kenon Holdings 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 Zur Shamir with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zur Shamir and Kenon Holdings.
Diversification Opportunities for Zur Shamir and Kenon Holdings
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zur and Kenon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zur Shamir Holdings and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and Zur Shamir 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 Zur Shamir Holdings are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of Zur Shamir i.e., Zur Shamir and Kenon Holdings go up and down completely randomly.
Pair Corralation between Zur Shamir and Kenon Holdings
Assuming the 90 days trading horizon Zur Shamir Holdings is expected to generate 0.65 times more return on investment than Kenon Holdings. However, Zur Shamir Holdings is 1.53 times less risky than Kenon Holdings. It trades about 0.49 of its potential returns per unit of risk. Kenon Holdings is currently generating about 0.11 per unit of risk. If you would invest 63,090 in Zur Shamir Holdings on August 29, 2024 and sell it today you would earn a total of 8,780 from holding Zur Shamir Holdings or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zur Shamir Holdings vs. Kenon Holdings
Performance |
| Timeline |
| Zur Shamir Holdings |
| Kenon Holdings |
Zur Shamir and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zur Shamir and Kenon Holdings
The main advantage of trading using opposite Zur Shamir and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zur Shamir position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir vs. Shikun Binui |
| Kenon Holdings vs. ICL Israel Chemicals | Kenon Holdings vs. Tower Semiconductor | Kenon Holdings vs. Israel Corp | Kenon Holdings vs. Nova |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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