Correlation Between Aran Research and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Aran Research and Gan Shmuel 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 Aran Research and Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aran Research and and Gan Shmuel, you can compare the effects of market volatilities on Aran Research and Gan Shmuel 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 Aran Research with a short position of Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aran Research and Gan Shmuel.
Diversification Opportunities for Aran Research and Gan Shmuel
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aran and Gan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aran Research and and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel and Aran Research 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 Aran Research and are associated (or correlated) with Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Aran Research i.e., Aran Research and Gan Shmuel go up and down completely randomly.
Pair Corralation between Aran Research and Gan Shmuel
Assuming the 90 days trading horizon Aran Research and is expected to under-perform the Gan Shmuel. But the stock apears to be less risky and, when comparing its historical volatility, Aran Research and is 1.66 times less risky than Gan Shmuel. The stock trades about -0.12 of its potential returns per unit of risk. The Gan Shmuel is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 376,000 in Gan Shmuel on September 1, 2024 and sell it today you would earn a total of 16,000 from holding Gan Shmuel or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aran Research and vs. Gan Shmuel
Performance |
| Timeline |
| Aran Research |
| Gan Shmuel |
Aran Research and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aran Research and Gan Shmuel
The main advantage of trading using opposite Aran Research and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aran Research position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Aran Research vs. Arad | Aran Research vs. Alony Hetz Properties | Aran Research vs. Airport City | Aran Research vs. Harel Insurance Investments |
| Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Sano Brunos Enterprises | Gan Shmuel vs. Al Bad Massuot Yitzhak |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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