Correlation Between Altshuler Shaham and Sure Tech

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

Diversification Opportunities for Altshuler Shaham and Sure Tech

-0.01

Correlation Coefficient

Altshuler Shaham  Sure Tech

Good diversification

The 3 months correlation between Altshuler and Sure is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Sure Tech go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Sure Tech

Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to under-perform the Sure Tech. In addition to that, Altshuler Shaham is 1.05 times more volatile than Sure Tech Investments LP. It trades about -0.07 of its total potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.04 per unit of volatility. If you would invest  74,510  in Sure Tech Investments LP on December 30, 2024 and sell it today you would lose (3,540) from holding Sure Tech Investments LP or give up 4.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.08%
Values	Daily Returns

Altshuler Shaham Financial  vs.  Sure Tech Investments LP

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.

Sure Tech Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sure Tech Investments LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sure Tech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Altshuler Shaham and Sure Tech

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

The idea behind Altshuler Shaham Financial and Sure Tech Investments LP 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.