Correlation Between Altshuler Shaham and Analyst IMS

Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Analyst IMS 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 Altshuler Shaham and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altshuler Shaham Financial and Analyst IMS Investment, you can compare the effects of market volatilities on Altshuler Shaham and Analyst IMS 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 Altshuler Shaham with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Analyst IMS.

Diversification Opportunities for Altshuler Shaham and Analyst IMS

0.06

Correlation Coefficient

Altshuler Shaham  Analyst IMS

Significant diversification

The 3 months correlation between Altshuler and Analyst is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Altshuler Shaham 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 Altshuler Shaham Financial are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Analyst IMS go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Analyst IMS

Assuming the 90 days trading horizon Altshuler Shaham is expected to generate 3.57 times less return on investment than Analyst IMS. In addition to that, Altshuler Shaham is 1.36 times more volatile than Analyst IMS Investment. It trades about 0.14 of its total potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.66 per unit of volatility. If you would invest  373,500  in Analyst IMS Investment on October 10, 2024 and sell it today you would earn a total of  268,700  from holding Analyst IMS Investment or generate 71.94% return on investment over 90 days.

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

Altshuler Shaham Financial  vs.  Analyst IMS Investment

Altshuler Shaham Fin

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Altshuler Shaham sustained solid returns over the last few months and may actually be approaching a breakup point.

Analyst IMS Investment

Risk-Adjusted Performance

51 of 100

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Analyst IMS Investment are ranked lower than 51 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Analyst IMS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altshuler Shaham and Analyst IMS

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

The idea behind Altshuler Shaham Financial and Analyst IMS Investment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.