Correlation Between IShares Core and Shagrir Group
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Shagrir Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares Core SP and Shagrir Group Vehicle, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Shagrir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Shagrir Group.
Diversification Opportunities for IShares Core and Shagrir Group
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Shagrir is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding IShares Core SP 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 IShares Core 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 IShares Core SP 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 IShares Core i.e., IShares Core and Shagrir Group go up and down completely randomly.
Pair Corralation between IShares Core and Shagrir Group
Considering the 90-day investment horizon IShares Core SP is expected to generate 0.52 times more return on investment than Shagrir Group. However, IShares Core SP is 1.93 times less risky than Shagrir Group. It trades about 0.03 of its potential returns per unit of risk. Shagrir Group Vehicle is currently generating about -0.06 per unit of risk. If you would invest 5,054 in IShares Core SP on December 29, 2023 and sell it today you would earn a total of 1,004 from holding IShares Core SP or generate 19.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 78.74% |
Values | Daily Returns |
IShares Core SP vs. Shagrir Group Vehicle
Performance |
Timeline |
IShares Core SP |
Shagrir Group Vehicle |
IShares Core and Shagrir Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Core and Shagrir Group
The main advantage of trading using opposite IShares Core and Shagrir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.IShares Core vs. Davis Select International | IShares Core vs. Dimensional ETF Trust | IShares Core vs. Principal Value ETF | IShares Core vs. Vanguard Small Cap Index |
Shagrir Group vs. Nice | Shagrir Group vs. Bank Leumi Le Israel | Shagrir Group vs. ICL Israel Chemicals | Shagrir Group vs. Mizrahi Tefahot |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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