Correlation Between Averbuch Formica and Shikun Binui
Can any of the company-specific risk be diversified away by investing in both Averbuch Formica and Shikun Binui 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 Averbuch Formica and Shikun Binui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Averbuch Formica Center and Shikun Binui, you can compare the effects of market volatilities on Averbuch Formica and Shikun Binui 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 Averbuch Formica with a short position of Shikun Binui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Averbuch Formica and Shikun Binui.
Diversification Opportunities for Averbuch Formica and Shikun Binui
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Averbuch and Shikun is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Averbuch Formica Center and Shikun Binui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shikun Binui and Averbuch Formica 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 Averbuch Formica Center are associated (or correlated) with Shikun Binui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shikun Binui has no effect on the direction of Averbuch Formica i.e., Averbuch Formica and Shikun Binui go up and down completely randomly.
Pair Corralation between Averbuch Formica and Shikun Binui
Assuming the 90 days trading horizon Averbuch Formica Center is expected to under-perform the Shikun Binui. In addition to that, Averbuch Formica is 1.07 times more volatile than Shikun Binui. It trades about -0.05 of its total potential returns per unit of risk. Shikun Binui is currently generating about -0.04 per unit of volatility. If you would invest 190,000 in Shikun Binui on December 30, 2023 and sell it today you would lose (98,900) from holding Shikun Binui or give up 52.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Averbuch Formica Center vs. Shikun Binui
Performance |
Timeline |
Averbuch Formica Center |
Shikun Binui |
Averbuch Formica and Shikun Binui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Averbuch Formica and Shikun Binui
The main advantage of trading using opposite Averbuch Formica and Shikun Binui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Averbuch Formica position performs unexpectedly, Shikun Binui 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 Shikun Binui will offset losses from the drop in Shikun Binui's long position.Averbuch Formica vs. Black Sea Property | Averbuch Formica vs. Direct Capital Investments | Averbuch Formica vs. Aerodrome Group | Averbuch Formica vs. Israel China Biotechnology |
Shikun Binui vs. Black Sea Property | Shikun Binui vs. Direct Capital Investments | Shikun Binui vs. Aerodrome Group | Shikun Binui vs. Israel China Biotechnology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |