Correlation Between Gan Shmuel and Salomon A

Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and Salomon A 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 Gan Shmuel and Salomon A into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gan Shmuel and Salomon A Angel, you can compare the effects of market volatilities on Gan Shmuel and Salomon A 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 Gan Shmuel with a short position of Salomon A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and Salomon A.

Diversification Opportunities for Gan Shmuel and Salomon A

-0.58

Correlation Coefficient

Gan Shmuel  Salomon A

Excellent diversification

The 3 months correlation between Gan and Salomon is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and Salomon A Angel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salomon A Angel and Gan Shmuel 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 Gan Shmuel are associated (or correlated) with Salomon A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salomon A Angel has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and Salomon A go up and down completely randomly.

Pair Corralation between Gan Shmuel and Salomon A

Assuming the 90 days trading horizon Gan Shmuel is expected to generate 0.95 times more return on investment than Salomon A. However, Gan Shmuel is 1.05 times less risky than Salomon A. It trades about 0.06 of its potential returns per unit of risk. Salomon A Angel is currently generating about 0.02 per unit of risk. If you would invest  166,098  in Gan Shmuel on January 31, 2024 and sell it today you would earn a total of  80,902  from holding Gan Shmuel or generate 48.71% return on investment over 90 days.

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

Gan Shmuel  vs.  Salomon A Angel

Gan Shmuel

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gan Shmuel are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gan Shmuel sustained solid returns over the last few months and may actually be approaching a breakup point.

Salomon A Angel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Salomon A Angel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Gan Shmuel and Salomon A

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

The idea behind Gan Shmuel and Salomon A Angel 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.