Correlation Between Clal Biotechnology and Fantasy Network
Can any of the company-specific risk be diversified away by investing in both Clal Biotechnology and Fantasy Network 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 Clal Biotechnology and Fantasy Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clal Biotechnology Industries and Fantasy Network, you can compare the effects of market volatilities on Clal Biotechnology and Fantasy Network 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 Clal Biotechnology with a short position of Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Biotechnology and Fantasy Network.
Diversification Opportunities for Clal Biotechnology and Fantasy Network
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clal and Fantasy is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Clal Biotechnology Industries and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network and Clal Biotechnology 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 Clal Biotechnology Industries are associated (or correlated) with Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of Clal Biotechnology i.e., Clal Biotechnology and Fantasy Network go up and down completely randomly.
Pair Corralation between Clal Biotechnology and Fantasy Network
Assuming the 90 days trading horizon Clal Biotechnology Industries is expected to generate 0.25 times more return on investment than Fantasy Network. However, Clal Biotechnology Industries is 3.93 times less risky than Fantasy Network. It trades about 0.09 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.21 per unit of risk. If you would invest 3,500 in Clal Biotechnology Industries on December 1, 2024 and sell it today you would earn a total of 60.00 from holding Clal Biotechnology Industries or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Biotechnology Industries vs. Fantasy Network
Performance |
| Timeline |
| Clal Biotechnology |
| Fantasy Network |
Clal Biotechnology and Fantasy Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Biotechnology and Fantasy Network
The main advantage of trading using opposite Clal Biotechnology and Fantasy Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Biotechnology position performs unexpectedly, Fantasy Network 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 Fantasy Network will offset losses from the drop in Fantasy Network's long position.| Clal Biotechnology vs. Kamada | Clal Biotechnology vs. BioLine RX | Clal Biotechnology vs. Evogene | Clal Biotechnology vs. Bezeq Israeli Telecommunication |
| Fantasy Network vs. Retailors | Fantasy Network vs. Multi Retail Group | Fantasy Network vs. Israel Discount Bank | Fantasy Network vs. Bank Leumi Le 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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