Correlation Between Analyst IMS and Gilat Telecom
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Gilat Telecom 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 Gilat Telecom 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 Gilat Telecom Global, you can compare the effects of market volatilities on Analyst IMS and Gilat Telecom 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 Gilat Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Gilat Telecom.
Diversification Opportunities for Analyst IMS and Gilat Telecom
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Analyst and Gilat is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Gilat Telecom Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Telecom Global 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 Gilat Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Telecom Global has no effect on the direction of Analyst IMS i.e., Analyst IMS and Gilat Telecom go up and down completely randomly.
Pair Corralation between Analyst IMS and Gilat Telecom
Assuming the 90 days trading horizon Analyst IMS Investment is expected to generate 0.41 times more return on investment than Gilat Telecom. However, Analyst IMS Investment is 2.47 times less risky than Gilat Telecom. It trades about 0.55 of its potential returns per unit of risk. Gilat Telecom Global is currently generating about -0.03 per unit of risk. If you would invest 420,000 in Analyst IMS Investment on August 31, 2024 and sell it today you would earn a total of 40,200 from holding Analyst IMS Investment or generate 9.57% 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. Gilat Telecom Global
Performance |
| Timeline |
| Analyst IMS Investment |
| Gilat Telecom Global |
Analyst IMS and Gilat Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and Gilat Telecom
The main advantage of trading using opposite Analyst IMS and Gilat Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, Gilat Telecom 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 Gilat Telecom will offset losses from the drop in Gilat Telecom's long position.| Analyst IMS vs. Menif Financial Services | Analyst IMS vs. Accel Solutions Group | Analyst IMS vs. Rani Zim Shopping | Analyst IMS vs. Mivtach Shamir |
| Gilat Telecom vs. Bezeq Israeli Telecommunication | Gilat Telecom vs. Partner | Gilat Telecom vs. Satcom Systems | Gilat Telecom vs. Cellcom Israel |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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