Correlation Between AbbVie and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both AbbVie and Gan Shmuel 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 AbbVie and Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AbbVie Inc and Gan Shmuel, you can compare the effects of market volatilities on AbbVie and Gan Shmuel 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 AbbVie with a short position of Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AbbVie and Gan Shmuel.
Diversification Opportunities for AbbVie and Gan Shmuel
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AbbVie and Gan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AbbVie Inc and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel and AbbVie 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 AbbVie Inc are associated (or correlated) with Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of AbbVie i.e., AbbVie and Gan Shmuel go up and down completely randomly.
Pair Corralation between AbbVie and Gan Shmuel
Given the investment horizon of 90 days AbbVie Inc is expected to under-perform the Gan Shmuel. But the stock apears to be less risky and, when comparing its historical volatility, AbbVie Inc is 4.02 times less risky than Gan Shmuel. The stock trades about -0.16 of its potential returns per unit of risk. The Gan Shmuel is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 170,151 in Gan Shmuel on January 24, 2024 and sell it today you would earn a total of 70,249 from holding Gan Shmuel or generate 41.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
AbbVie Inc vs. Gan Shmuel
Performance |
| Timeline |
| AbbVie Inc |
| Gan Shmuel |
AbbVie and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AbbVie and Gan Shmuel
The main advantage of trading using opposite AbbVie and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AbbVie position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| AbbVie vs. Merck Company | AbbVie vs. Pfizer Inc | AbbVie vs. Eli Lilly and | AbbVie vs. Bristol Myers Squibb |
| Gan Shmuel vs. Aryt Industries | Gan Shmuel vs. Scope Metals Group | Gan Shmuel vs. Delek Automotive Systems |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |