Correlation Between Altshuler Shaham and Trucknet Enterprise

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

Diversification Opportunities for Altshuler Shaham and Trucknet Enterprise

0.55

Correlation Coefficient

Altshuler Shaham  Trucknet Enterprise

Very weak diversification

The 3 months correlation between Altshuler and Trucknet is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Trucknet Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trucknet Enterprise 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 Trucknet Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trucknet Enterprise has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Trucknet Enterprise go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Trucknet Enterprise

Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 0.45 times more return on investment than Trucknet Enterprise. However, Altshuler Shaham Financial is 2.22 times less risky than Trucknet Enterprise. It trades about -0.03 of its potential returns per unit of risk. Trucknet Enterprise is currently generating about -0.06 per unit of risk. If you would invest  60,180  in Altshuler Shaham Financial on December 24, 2024 and sell it today you would lose (2,620) from holding Altshuler Shaham Financial or give up 4.35% of portfolio value over 90 days.

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

Altshuler Shaham Financial  vs.  Trucknet Enterprise

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 somewhat strong basic indicators, Altshuler Shaham is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Trucknet Enterprise

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trucknet Enterprise 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 Trucknet Enterprise

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

The idea behind Altshuler Shaham Financial and Trucknet Enterprise 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.