Correlation Between Shapir Engineering and Lesico
Can any of the company-specific risk be diversified away by investing in both Shapir Engineering and Lesico 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 Lesico 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 Lesico, you can compare the effects of market volatilities on Shapir Engineering and Lesico 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 Lesico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapir Engineering and Lesico.
Diversification Opportunities for Shapir Engineering and Lesico
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shapir and Lesico is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shapir Engineering Industry and Lesico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesico 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 Lesico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesico has no effect on the direction of Shapir Engineering i.e., Shapir Engineering and Lesico go up and down completely randomly.
Pair Corralation between Shapir Engineering and Lesico
Assuming the 90 days trading horizon Shapir Engineering Industry is expected to under-perform the Lesico. But the stock apears to be less risky and, when comparing its historical volatility, Shapir Engineering Industry is 1.14 times less risky than Lesico. The stock trades about -0.05 of its potential returns per unit of risk. The Lesico is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 27,170 in Lesico on January 17, 2024 and sell it today you would earn a total of 6,380 from holding Lesico or generate 23.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.04% |
| Values | Daily Returns |
Shapir Engineering Industry vs. Lesico
Performance |
| Timeline |
| Shapir Engineering |
| Lesico |
Shapir Engineering and Lesico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapir Engineering and Lesico
The main advantage of trading using opposite Shapir Engineering and Lesico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapir Engineering position performs unexpectedly, Lesico 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 Lesico will offset losses from the drop in Lesico's long position.| Shapir Engineering vs. Arad | Shapir Engineering vs. Alony Hetz Properties | Shapir Engineering vs. Airport City | Shapir Engineering vs. Harel Insurance Investments |
| Lesico vs. Arad | Lesico vs. Alony Hetz Properties | Lesico vs. Airport City | Lesico vs. Harel Insurance Investments |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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