Correlation Between Aura Investments and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both Aura Investments and Gamatronic Electronic 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 Aura Investments and Gamatronic Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura Investments and Gamatronic Electronic Industries, you can compare the effects of market volatilities on Aura Investments and Gamatronic Electronic 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 Aura Investments with a short position of Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura Investments and Gamatronic Electronic.
Diversification Opportunities for Aura Investments and Gamatronic Electronic
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aura and Gamatronic is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aura Investments and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic and Aura Investments 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 Aura Investments are associated (or correlated) with Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Aura Investments i.e., Aura Investments and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between Aura Investments and Gamatronic Electronic
Assuming the 90 days trading horizon Aura Investments is expected to generate 0.98 times more return on investment than Gamatronic Electronic. However, Aura Investments is 1.02 times less risky than Gamatronic Electronic. It trades about 0.11 of its potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about -0.04 per unit of risk. If you would invest 60,278 in Aura Investments on August 26, 2024 and sell it today you would earn a total of 126,922 from holding Aura Investments or generate 210.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aura Investments vs. Gamatronic Electronic Industri
Performance |
| Timeline |
| Aura Investments |
| Gamatronic Electronic |
Aura Investments and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aura Investments and Gamatronic Electronic
The main advantage of trading using opposite Aura Investments and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura Investments position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic's long position.| Aura Investments vs. Israel Canada | Aura Investments vs. Azrieli Group | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui |
| Gamatronic Electronic vs. Direct Capital Investments | Gamatronic Electronic vs. Brainsway | Gamatronic Electronic vs. Mivne Real Estate | Gamatronic Electronic vs. Photomyne |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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