Correlation Between Shapir Engineering and Shikun Binui
Can any of the company-specific risk be diversified away by investing in both Shapir Engineering and Shikun Binui 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 Shikun Binui 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 Shikun Binui, you can compare the effects of market volatilities on Shapir Engineering and Shikun Binui 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 Shikun Binui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapir Engineering and Shikun Binui.
Diversification Opportunities for Shapir Engineering and Shikun Binui
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shapir and Shikun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shapir Engineering Industry and Shikun Binui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shikun Binui 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 Shikun Binui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shikun Binui has no effect on the direction of Shapir Engineering i.e., Shapir Engineering and Shikun Binui go up and down completely randomly.
Pair Corralation between Shapir Engineering and Shikun Binui
Assuming the 90 days trading horizon Shapir Engineering Industry is expected to generate 1.22 times more return on investment than Shikun Binui. However, Shapir Engineering is 1.22 times more volatile than Shikun Binui. It trades about -0.06 of its potential returns per unit of risk. Shikun Binui is currently generating about -0.37 per unit of risk. If you would invest 208,800 in Shapir Engineering Industry on January 26, 2024 and sell it today you would lose (5,400) from holding Shapir Engineering Industry or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shapir Engineering Industry vs. Shikun Binui
Performance |
| Timeline |
| Shapir Engineering |
| Shikun Binui |
Shapir Engineering and Shikun Binui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapir Engineering and Shikun Binui
The main advantage of trading using opposite Shapir Engineering and Shikun Binui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapir Engineering position performs unexpectedly, Shikun Binui 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 Shikun Binui will offset losses from the drop in Shikun Binui's long position.| Shapir Engineering vs. Alony Hetz Properties | Shapir Engineering vs. Melisron | Shapir Engineering vs. Shufersal | Shapir Engineering vs. Israel Discount Bank |
| Shikun Binui vs. Alony Hetz Properties | Shikun Binui vs. Melisron | Shikun Binui vs. Shufersal | Shikun Binui 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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