Correlation Between Averbuch Formica and Shikun Binui

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Averbuch Formica Center  vs.  Shikun Binui

 Performance 
       Timeline  
Averbuch Formica Center 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Averbuch Formica Center has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Shikun Binui 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Shikun Binui has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

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.
The idea behind Averbuch Formica Center and Shikun Binui pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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