Correlation Between Altshuler Shaham and Clal Industries

Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Clal Industries 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 Clal Industries 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 Clal Industries and, you can compare the effects of market volatilities on Altshuler Shaham and Clal Industries 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 Clal Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Clal Industries.

Diversification Opportunities for Altshuler Shaham and Clal Industries

0.19

Correlation Coefficient

Altshuler Shaham  Clal Industries

Average diversification

The 3 months correlation between Altshuler and Clal is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Clal Industries and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Industries 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 Clal Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Industries has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Clal Industries go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Clal Industries

Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 0.87 times more return on investment than Clal Industries. However, Altshuler Shaham Financial is 1.15 times less risky than Clal Industries. It trades about -0.07 of its potential returns per unit of risk. Clal Industries and is currently generating about -0.1 per unit of risk. If you would invest  60,520  in Altshuler Shaham Financial on December 30, 2024 and sell it today you would lose (5,360) from holding Altshuler Shaham Financial or give up 8.86% of portfolio value over 90 days.

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

Altshuler Shaham Financial  vs.  Clal Industries and

Altshuler Shaham Fin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altshuler Shaham Financial 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.

Clal Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clal Industries and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Altshuler Shaham and Clal Industries

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

The idea behind Altshuler Shaham Financial and Clal Industries and 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.