Correlation Between Plasto Cargal and Strauss
Can any of the company-specific risk be diversified away by investing in both Plasto Cargal and Strauss 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 Plasto Cargal and Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plasto Cargal Group and Strauss Group, you can compare the effects of market volatilities on Plasto Cargal and Strauss 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 Plasto Cargal with a short position of Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plasto Cargal and Strauss.
Diversification Opportunities for Plasto Cargal and Strauss
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Plasto and Strauss is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Plasto Cargal Group and Strauss Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strauss Group and Plasto Cargal 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 Plasto Cargal Group are associated (or correlated) with Strauss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strauss Group has no effect on the direction of Plasto Cargal i.e., Plasto Cargal and Strauss go up and down completely randomly.
Pair Corralation between Plasto Cargal and Strauss
Assuming the 90 days trading horizon Plasto Cargal Group is expected to under-perform the Strauss. But the stock apears to be less risky and, when comparing its historical volatility, Plasto Cargal Group is 1.13 times less risky than Strauss. The stock trades about -0.35 of its potential returns per unit of risk. The Strauss Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 700,771 in Strauss Group on January 26, 2024 and sell it today you would lose (12,471) from holding Strauss Group or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plasto Cargal Group vs. Strauss Group
Performance |
| Timeline |
| Plasto Cargal Group |
| Strauss Group |
Plasto Cargal and Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plasto Cargal and Strauss
The main advantage of trading using opposite Plasto Cargal and Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plasto Cargal position performs unexpectedly, Strauss 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 Strauss will offset losses from the drop in Strauss' long position.| Plasto Cargal vs. MLRN Projects and | Plasto Cargal vs. Lesico | Plasto Cargal vs. Al Bad Massuot Yitzhak | Plasto Cargal vs. Ilex Medical |
| Strauss vs. Shufersal | Strauss vs. Israel Discount Bank | Strauss vs. Bank Leumi Le Israel | Strauss vs. Azrieli Group |
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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