Correlation Between Shagrir Group and PACCAR
Can any of the company-specific risk be diversified away by investing in both Shagrir Group and PACCAR 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 Shagrir Group and PACCAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shagrir Group Vehicle and PACCAR Inc, you can compare the effects of market volatilities on Shagrir Group and PACCAR 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 Shagrir Group with a short position of PACCAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shagrir Group and PACCAR.
Diversification Opportunities for Shagrir Group and PACCAR
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shagrir and PACCAR is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shagrir Group Vehicle and PACCAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACCAR Inc and Shagrir Group 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 Shagrir Group Vehicle are associated (or correlated) with PACCAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACCAR Inc has no effect on the direction of Shagrir Group i.e., Shagrir Group and PACCAR go up and down completely randomly.
Pair Corralation between Shagrir Group and PACCAR
If you would invest 145.00 in Shagrir Group Vehicle on January 30, 2024 and sell it today you would earn a total of 0.00 from holding Shagrir Group Vehicle or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Shagrir Group Vehicle vs. PACCAR Inc
Performance |
Timeline |
Shagrir Group Vehicle |
PACCAR Inc |
Shagrir Group and PACCAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shagrir Group and PACCAR
The main advantage of trading using opposite Shagrir Group and PACCAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shagrir Group position performs unexpectedly, PACCAR 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 PACCAR will offset losses from the drop in PACCAR's long position.Shagrir Group vs. AZZ Incorporated | Shagrir Group vs. XCPCNL Business Services | Shagrir Group vs. System1 | Shagrir Group vs. SMX Public Limited |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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