Correlation Between Sure Tech and Altshuler Shaham

Can any of the company-specific risk be diversified away by investing in both Sure Tech and Altshuler Shaham 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 Sure Tech and Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sure Tech Investments LP and Altshuler Shaham Financial, you can compare the effects of market volatilities on Sure Tech and Altshuler Shaham 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 Sure Tech with a short position of Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Altshuler Shaham.

Diversification Opportunities for Sure Tech and Altshuler Shaham

-0.01

Correlation Coefficient

Sure Tech  Altshuler Shaham

Good diversification

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

Pair Corralation between Sure Tech and Altshuler Shaham

Assuming the 90 days trading horizon Sure Tech Investments LP is expected to generate 0.96 times more return on investment than Altshuler Shaham. However, Sure Tech Investments LP is 1.05 times less risky than Altshuler Shaham. It trades about -0.04 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about -0.07 per unit of risk. 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

Sure Tech Investments LP  vs.  Altshuler Shaham Financial

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.

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.

Pair Trading with Sure Tech and Altshuler Shaham

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

The idea behind Sure Tech Investments LP and Altshuler Shaham Financial 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.