Correlation Between Analyst IMS and Golan Plastic
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Golan Plastic 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 Golan Plastic 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 Golan Plastic, you can compare the effects of market volatilities on Analyst IMS and Golan Plastic 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 Golan Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Golan Plastic.
Diversification Opportunities for Analyst IMS and Golan Plastic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Analyst and Golan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Golan Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golan Plastic 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 Golan Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golan Plastic has no effect on the direction of Analyst IMS i.e., Analyst IMS and Golan Plastic go up and down completely randomly.
Pair Corralation between Analyst IMS and Golan Plastic
Assuming the 90 days trading horizon Analyst IMS is expected to generate 2.25 times less return on investment than Golan Plastic. But when comparing it to its historical volatility, Analyst IMS Investment is 2.79 times less risky than Golan Plastic. It trades about 0.48 of its potential returns per unit of risk. Golan Plastic is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 99,000 in Golan Plastic on September 1, 2024 and sell it today you would earn a total of 19,000 from holding Golan Plastic or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. Golan Plastic
Performance |
| Timeline |
| Analyst IMS Investment |
| Golan Plastic |
Analyst IMS and Golan Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and Golan Plastic
The main advantage of trading using opposite Analyst IMS and Golan Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, Golan Plastic 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 Golan Plastic will offset losses from the drop in Golan Plastic's long position.| Analyst IMS vs. TAT Technologies | Analyst IMS vs. Clal Biotechnology Industries | Analyst IMS vs. Spuntech | Analyst IMS vs. Elbit Medical Technologies |
| Golan Plastic vs. Arad | Golan Plastic vs. Alony Hetz Properties | Golan Plastic vs. Airport City | Golan Plastic 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |