Correlation Between Shapir Engineering and El Mor
Can any of the company-specific risk be diversified away by investing in both Shapir Engineering and El Mor 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 Shapir Engineering and El Mor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shapir Engineering Industry and El Mor Electric Installation, you can compare the effects of market volatilities on Shapir Engineering and El Mor 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 Shapir Engineering with a short position of El Mor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapir Engineering and El Mor.
Diversification Opportunities for Shapir Engineering and El Mor
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shapir and ELMR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shapir Engineering Industry and El Mor Electric Installation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Mor Electric and Shapir Engineering 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 Shapir Engineering Industry are associated (or correlated) with El Mor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Mor Electric has no effect on the direction of Shapir Engineering i.e., Shapir Engineering and El Mor go up and down completely randomly.
Pair Corralation between Shapir Engineering and El Mor
Assuming the 90 days trading horizon Shapir Engineering Industry is expected to under-perform the El Mor. In addition to that, Shapir Engineering is 2.63 times more volatile than El Mor Electric Installation. It trades about -0.06 of its total potential returns per unit of risk. El Mor Electric Installation is currently generating about 0.3 per unit of volatility. If you would invest 100,614 in El Mor Electric Installation on January 26, 2024 and sell it today you would earn a total of 4,486 from holding El Mor Electric Installation or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shapir Engineering Industry vs. El Mor Electric Installation
Performance |
| Timeline |
| Shapir Engineering |
| El Mor Electric |
Shapir Engineering and El Mor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapir Engineering and El Mor
The main advantage of trading using opposite Shapir Engineering and El Mor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapir Engineering position performs unexpectedly, El Mor 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 El Mor will offset losses from the drop in El Mor's long position.| Shapir Engineering vs. Alony Hetz Properties | Shapir Engineering vs. Melisron | Shapir Engineering vs. Shufersal | Shapir Engineering vs. Israel Discount Bank |
| El Mor vs. Alony Hetz Properties | El Mor vs. Melisron | El Mor vs. Shufersal | El Mor 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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