Correlation Between Aerodrome and Shikun Binui
Can any of the company-specific risk be diversified away by investing in both Aerodrome 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 Aerodrome and Shikun Binui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerodrome Group and Shikun Binui, you can compare the effects of market volatilities on Aerodrome 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 Aerodrome with a short position of Shikun Binui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerodrome and Shikun Binui.
Diversification Opportunities for Aerodrome and Shikun Binui
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aerodrome and Shikun is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aerodrome Group and Shikun Binui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shikun Binui and Aerodrome 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 Aerodrome Group 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 Aerodrome i.e., Aerodrome and Shikun Binui go up and down completely randomly.
Pair Corralation between Aerodrome and Shikun Binui
Assuming the 90 days trading horizon Aerodrome Group is expected to generate 2.48 times more return on investment than Shikun Binui. However, Aerodrome is 2.48 times more volatile than Shikun Binui. It trades about 0.18 of its potential returns per unit of risk. Shikun Binui is currently generating about -0.37 per unit of risk. If you would invest 8,200 in Aerodrome Group on January 29, 2024 and sell it today you would earn a total of 1,070 from holding Aerodrome Group or generate 13.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aerodrome Group vs. Shikun Binui
Performance |
Timeline |
Aerodrome Group |
Shikun Binui |
Aerodrome and Shikun Binui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aerodrome and Shikun Binui
The main advantage of trading using opposite Aerodrome and Shikun Binui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerodrome 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.Aerodrome vs. IBI Mutual Funds | Aerodrome vs. Sure Tech Investments LP | Aerodrome vs. ICL Israel Chemicals | Aerodrome vs. Azorim Investment Development |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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