Correlation Between Zur Shamir and Beeio Honey
Can any of the company-specific risk be diversified away by investing in both Zur Shamir and Beeio Honey 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 Beeio Honey 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 Beeio Honey, you can compare the effects of market volatilities on Zur Shamir and Beeio Honey 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 Beeio Honey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zur Shamir and Beeio Honey.
Diversification Opportunities for Zur Shamir and Beeio Honey
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zur and Beeio is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zur Shamir Holdings and Beeio Honey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeio Honey 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 Beeio Honey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeio Honey has no effect on the direction of Zur Shamir i.e., Zur Shamir and Beeio Honey go up and down completely randomly.
Pair Corralation between Zur Shamir and Beeio Honey
Assuming the 90 days trading horizon Zur Shamir is expected to generate 23.22 times less return on investment than Beeio Honey. But when comparing it to its historical volatility, Zur Shamir Holdings is 18.5 times less risky than Beeio Honey. It trades about 0.03 of its potential returns per unit of risk. Beeio Honey is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 24,110 in Beeio Honey on September 5, 2024 and sell it today you would lose (7,610) from holding Beeio Honey or give up 31.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zur Shamir Holdings vs. Beeio Honey
Performance |
| Timeline |
| Zur Shamir Holdings |
| Beeio Honey |
Zur Shamir and Beeio Honey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zur Shamir and Beeio Honey
The main advantage of trading using opposite Zur Shamir and Beeio Honey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zur Shamir position performs unexpectedly, Beeio Honey 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 Beeio Honey will offset losses from the drop in Beeio Honey's long position.| Zur Shamir vs. Israel Discount Bank | Zur Shamir vs. First International Bank | Zur Shamir vs. Elbit Systems |
| Beeio Honey vs. Palram | Beeio Honey vs. Shagrir Group Vehicle | Beeio Honey vs. EN Shoham Business | Beeio Honey vs. Lapidoth |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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