Correlation Between Lesico and Shapir Engineering
Can any of the company-specific risk be diversified away by investing in both Lesico and Shapir Engineering 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 Lesico and Shapir Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesico and Shapir Engineering Industry, you can compare the effects of market volatilities on Lesico and Shapir Engineering 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 Lesico with a short position of Shapir Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesico and Shapir Engineering.
Diversification Opportunities for Lesico and Shapir Engineering
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lesico and Shapir is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lesico and Shapir Engineering Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapir Engineering and Lesico 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 Lesico are associated (or correlated) with Shapir Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapir Engineering has no effect on the direction of Lesico i.e., Lesico and Shapir Engineering go up and down completely randomly.
Pair Corralation between Lesico and Shapir Engineering
Assuming the 90 days trading horizon Lesico is expected to generate 0.91 times more return on investment than Shapir Engineering. However, Lesico is 1.09 times less risky than Shapir Engineering. It trades about 0.02 of its potential returns per unit of risk. Shapir Engineering Industry is currently generating about -0.03 per unit of risk. If you would invest 32,883 in Lesico on January 26, 2024 and sell it today you would earn a total of 987.00 from holding Lesico or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesico vs. Shapir Engineering Industry
Performance |
| Timeline |
| Lesico |
| Shapir Engineering |
Lesico and Shapir Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesico and Shapir Engineering
The main advantage of trading using opposite Lesico and Shapir Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesico position performs unexpectedly, Shapir Engineering 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 Shapir Engineering will offset losses from the drop in Shapir Engineering's long position.| Lesico vs. Alony Hetz Properties | Lesico vs. Melisron | Lesico vs. Shufersal | Lesico vs. Israel Discount Bank |
| Shapir Engineering vs. Alony Hetz Properties | Shapir Engineering vs. Melisron | Shapir Engineering vs. Shufersal | Shapir Engineering vs. Israel Discount Bank |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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