Correlation Between Shagrir Group and Hilan

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Can any of the company-specific risk be diversified away by investing in both Shagrir Group and Hilan 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 Shagrir Group and Hilan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shagrir Group Vehicle and Hilan, you can compare the effects of market volatilities on Shagrir Group and Hilan 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 Shagrir Group with a short position of Hilan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and Hilan.

Diversification Opportunities for Shagrir Group and Hilan

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Shagrir and Hilan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and Hilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilan and Shagrir Group 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 Shagrir Group Vehicle are associated (or correlated) with Hilan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilan has no effect on the direction of Shagrir Group i.e., Shagrir Group and Hilan go up and down completely randomly.

Pair Corralation between Shagrir Group and Hilan

If you would invest  95,910  in Shagrir Group Vehicle on December 30, 2023 and sell it today you would earn a total of  3,370  from holding Shagrir Group Vehicle or generate 3.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Shagrir Group Vehicle  vs.  Hilan

 Performance 
       Timeline  
Shagrir Group Vehicle 

Risk-Adjusted Performance

26 of 100

 
Low
 
High
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Shagrir Group Vehicle are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shagrir Group sustained solid returns over the last few months and may actually be approaching a breakup point.
Hilan 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Good
Over the last 90 days Hilan has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hilan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shagrir Group and Hilan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shagrir Group and Hilan

The main advantage of trading using opposite Shagrir Group and Hilan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, Hilan 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 Hilan will offset losses from the drop in Hilan's long position.
The idea behind Shagrir Group Vehicle and Hilan 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.
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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