Correlation Between Hilan and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both Hilan and Shagrir Group 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 Hilan and Shagrir Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilan and Shagrir Group Vehicle, you can compare the effects of market volatilities on Hilan and Shagrir Group 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 Hilan with a short position of Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilan and Shagrir Group.
Diversification Opportunities for Hilan and Shagrir Group
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hilan and Shagrir is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hilan and Shagrir Group Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shagrir Group Vehicle and Hilan 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 Hilan are associated (or correlated) with Shagrir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shagrir Group Vehicle has no effect on the direction of Hilan i.e., Hilan and Shagrir Group go up and down completely randomly.
Pair Corralation between Hilan and Shagrir Group
Assuming the 90 days trading horizon Hilan is expected to generate 1.46 times more return on investment than Shagrir Group. However, Hilan is 1.46 times more volatile than Shagrir Group Vehicle. It trades about 0.07 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about 0.0 per unit of risk. If you would invest 2,017,460 in Hilan on January 25, 2024 and sell it today you would earn a total of 87,540 from holding Hilan or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilan vs. Shagrir Group Vehicle
Performance |
| Timeline |
| Hilan |
| Shagrir Group Vehicle |
Hilan and Shagrir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilan and Shagrir Group
The main advantage of trading using opposite Hilan and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilan position performs unexpectedly, Shagrir Group 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 Shagrir Group will offset losses from the drop in Shagrir Group's long position.The idea behind Hilan and Shagrir Group Vehicle 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.| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Suny Cellular Communication | Shagrir Group vs. Rani Zim Shopping | Shagrir Group vs. Tadiran Hldg |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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