Correlation Between Shagrir Group and ICL Israel
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and ICL Israel 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 ICL Israel 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 ICL Israel Chemicals, you can compare the effects of market volatilities on Shagrir Group and ICL Israel 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 ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and ICL Israel.
Diversification Opportunities for Shagrir Group and ICL Israel
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shagrir and ICL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and ICL Israel Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICL Israel Chemicals 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 ICL Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICL Israel Chemicals has no effect on the direction of Shagrir Group i.e., Shagrir Group and ICL Israel go up and down completely randomly.
Pair Corralation between Shagrir Group and ICL Israel
Assuming the 90 days trading horizon Shagrir Group Vehicle is expected to under-perform the ICL Israel. In addition to that, Shagrir Group is 1.11 times more volatile than ICL Israel Chemicals. It trades about -0.06 of its total potential returns per unit of risk. ICL Israel Chemicals is currently generating about -0.05 per unit of volatility. If you would invest 321,410 in ICL Israel Chemicals on January 20, 2024 and sell it today you would lose (144,610) from holding ICL Israel Chemicals or give up 44.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shagrir Group Vehicle vs. ICL Israel Chemicals
Performance |
| Timeline |
| Shagrir Group Vehicle |
| ICL Israel Chemicals |
Shagrir Group and ICL Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shagrir Group and ICL Israel
The main advantage of trading using opposite Shagrir Group and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, ICL Israel 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 ICL Israel will offset losses from the drop in ICL Israel's long position.| Shagrir Group vs. EN Shoham Business | Shagrir Group vs. Accel Solutions Group | Shagrir Group vs. Mivtach Shamir | Shagrir Group vs. Rani Zim Shopping |
| ICL Israel vs. Elbit Systems | ICL Israel vs. Bezeq Israeli Telecommunication | ICL Israel vs. Bank Hapoalim | ICL Israel vs. Teva Pharmaceutical Industries |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |