Correlation Between Atreyu Capital and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both Atreyu Capital and Gilat Satellite 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 Atreyu Capital and Gilat Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atreyu Capital Markets and Gilat Satellite Networks, you can compare the effects of market volatilities on Atreyu Capital and Gilat Satellite 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 Atreyu Capital with a short position of Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreyu Capital and Gilat Satellite.
Diversification Opportunities for Atreyu Capital and Gilat Satellite
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atreyu and Gilat is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Atreyu Capital Markets and Gilat Satellite Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Satellite Networks and Atreyu Capital 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 Atreyu Capital Markets are associated (or correlated) with Gilat Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Satellite Networks has no effect on the direction of Atreyu Capital i.e., Atreyu Capital and Gilat Satellite go up and down completely randomly.
Pair Corralation between Atreyu Capital and Gilat Satellite
Assuming the 90 days trading horizon Atreyu Capital Markets is expected to generate 0.78 times more return on investment than Gilat Satellite. However, Atreyu Capital Markets is 1.29 times less risky than Gilat Satellite. It trades about 0.1 of its potential returns per unit of risk. Gilat Satellite Networks is currently generating about 0.04 per unit of risk. If you would invest 404,167 in Atreyu Capital Markets on November 2, 2024 and sell it today you would earn a total of 344,233 from holding Atreyu Capital Markets or generate 85.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Atreyu Capital Markets vs. Gilat Satellite Networks
Performance |
| Timeline |
| Atreyu Capital Markets |
| Gilat Satellite Networks |
Atreyu Capital and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atreyu Capital and Gilat Satellite
The main advantage of trading using opposite Atreyu Capital and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreyu Capital position performs unexpectedly, Gilat Satellite 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 Satellite will offset losses from the drop in Gilat Satellite's long position.| Atreyu Capital vs. Israel Discount Bank | Atreyu Capital vs. Alony Hetz Properties | Atreyu Capital vs. Bank Leumi Le Israel | Atreyu Capital vs. First International Bank |
| Gilat Satellite vs. Elbit Systems | Gilat Satellite vs. Tower Semiconductor | Gilat Satellite vs. Kamada | Gilat Satellite vs. Delek Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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