Correlation Between Scope Metals and Hamashbir 365

Can any of the company-specific risk be diversified away by investing in both Scope Metals and Hamashbir 365 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 Scope Metals and Hamashbir 365 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Scope Metals Group and Hamashbir 365 Holdings, you can compare the effects of market volatilities on Scope Metals and Hamashbir 365 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 Scope Metals with a short position of Hamashbir 365. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scope Metals and Hamashbir 365.

Diversification Opportunities for Scope Metals and Hamashbir 365

0.46

Correlation Coefficient

Scope Metals  Hamashbir 365

Very weak diversification

The 3 months correlation between Scope and Hamashbir is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and Hamashbir 365 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamashbir 365 Holdings and Scope Metals 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 Scope Metals Group are associated (or correlated) with Hamashbir 365. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamashbir 365 Holdings has no effect on the direction of Scope Metals i.e., Scope Metals and Hamashbir 365 go up and down completely randomly.

Pair Corralation between Scope Metals and Hamashbir 365

Assuming the 90 days trading horizon Scope Metals Group is expected to generate 1.69 times more return on investment than Hamashbir 365. However, Scope Metals is 1.69 times more volatile than Hamashbir 365 Holdings. It trades about 0.08 of its potential returns per unit of risk. Hamashbir 365 Holdings is currently generating about 0.1 per unit of risk. If you would invest  1,184,000  in Scope Metals Group on February 4, 2024 and sell it today you would earn a total of  59,000  from holding Scope Metals Group or generate 4.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Scope Metals Group  vs.  Hamashbir 365 Holdings

Scope Metals Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Scope Metals Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Scope Metals sustained solid returns over the last few months and may actually be approaching a breakup point.

Hamashbir 365 Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hamashbir 365 Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hamashbir 365 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Scope Metals and Hamashbir 365

The main advantage of trading using opposite Scope Metals and Hamashbir 365 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals position performs unexpectedly, Hamashbir 365 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 Hamashbir 365 will offset losses from the drop in Hamashbir 365's long position.

The idea behind Scope Metals Group and Hamashbir 365 Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.