Correlation Between Altshuler Shaham and Feat Fund

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

Diversification Opportunities for Altshuler Shaham and Feat Fund

0.1

Correlation Coefficient

Altshuler Shaham  Feat Fund

Average diversification

The 3 months correlation between Altshuler and Feat is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments 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 Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Feat Fund go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Feat Fund

Assuming the 90 days trading horizon Altshuler Shaham is expected to generate 5.62 times less return on investment than Feat Fund. In addition to that, Altshuler Shaham is 1.03 times more volatile than Feat Fund Investments. It trades about 0.1 of its total potential returns per unit of risk. Feat Fund Investments is currently generating about 0.56 per unit of volatility. If you would invest  12,650  in Feat Fund Investments on October 10, 2024 and sell it today you would earn a total of  3,340  from holding Feat Fund Investments or generate 26.4% 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.  Feat Fund Investments

Altshuler Shaham Fin

Risk-Adjusted Performance

10 of 100

Good

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.

Feat Fund Investments

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Feat Fund Investments are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Feat Fund sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altshuler Shaham and Feat Fund

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

The idea behind Altshuler Shaham Financial and Feat Fund Investments 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.