Correlation Between Altshuler Shaham and YD More

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

Diversification Opportunities for Altshuler Shaham and YD More

0.86

Correlation Coefficient

Altshuler Shaham  YD More

Very poor diversification

The 3 months correlation between Altshuler and MRIN is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More 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 YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and YD More go up and down completely randomly.

Pair Corralation between Altshuler Shaham and YD More

Assuming the 90 days trading horizon Altshuler Shaham is expected to generate 4.9 times less return on investment than YD More. But when comparing it to its historical volatility, Altshuler Shaham Financial is 1.01 times less risky than YD More. It trades about 0.02 of its potential returns per unit of risk. YD More Investments is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  77,978  in YD More Investments on September 15, 2024 and sell it today you would earn a total of  62,722  from holding YD More Investments or generate 80.44% return on investment over 90 days.

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

Altshuler Shaham Financial  vs.  YD More Investments

Altshuler Shaham Fin

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 17 (%) 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.

YD More Investments

Risk-Adjusted Performance

38 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in YD More Investments are ranked lower than 38 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, YD More sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altshuler Shaham and YD More

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

The idea behind Altshuler Shaham Financial and YD More 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.