Correlation Between Analyst IMS and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Global Knafaim 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 Analyst IMS and Global Knafaim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analyst IMS Investment and Global Knafaim Leasing, you can compare the effects of market volatilities on Analyst IMS and Global Knafaim 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 Analyst IMS with a short position of Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Global Knafaim.
Diversification Opportunities for Analyst IMS and Global Knafaim
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Analyst and Global is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Global Knafaim Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Knafaim Leasing and Analyst IMS 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 Analyst IMS Investment are associated (or correlated) with Global Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Knafaim Leasing has no effect on the direction of Analyst IMS i.e., Analyst IMS and Global Knafaim go up and down completely randomly.
Pair Corralation between Analyst IMS and Global Knafaim
Assuming the 90 days trading horizon Analyst IMS Investment is expected to generate 0.7 times more return on investment than Global Knafaim. However, Analyst IMS Investment is 1.43 times less risky than Global Knafaim. It trades about 0.13 of its potential returns per unit of risk. Global Knafaim Leasing is currently generating about 0.05 per unit of risk. If you would invest 264,360 in Analyst IMS Investment on September 2, 2024 and sell it today you would earn a total of 195,840 from holding Analyst IMS Investment or generate 74.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. Global Knafaim Leasing
Performance |
| Timeline |
| Analyst IMS Investment |
| Global Knafaim Leasing |
Analyst IMS and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and Global Knafaim
The main advantage of trading using opposite Analyst IMS and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, Global Knafaim 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 Global Knafaim will offset losses from the drop in Global Knafaim's long position.| Analyst IMS vs. Menif Financial Services | Analyst IMS vs. Accel Solutions Group | Analyst IMS vs. Rani Zim Shopping | Analyst IMS vs. Rapac Communication Infrastructure |
| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Airport City | Global Knafaim vs. Harel Insurance Investments |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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