Correlation Between Clal Biotechnology and Kamada
Can any of the company-specific risk be diversified away by investing in both Clal Biotechnology and Kamada 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 Kamada 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 Kamada, you can compare the effects of market volatilities on Clal Biotechnology and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Biotechnology and Kamada.
Diversification Opportunities for Clal Biotechnology and Kamada
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clal and Kamada is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Clal Biotechnology Industries and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Clal Biotechnology i.e., Clal Biotechnology and Kamada go up and down completely randomly.
Pair Corralation between Clal Biotechnology and Kamada
Assuming the 90 days trading horizon Clal Biotechnology Industries is expected to under-perform the Kamada. In addition to that, Clal Biotechnology is 1.01 times more volatile than Kamada. It trades about -0.14 of its total potential returns per unit of risk. Kamada is currently generating about 0.08 per unit of volatility. If you would invest 204,000 in Kamada on August 29, 2024 and sell it today you would earn a total of 5,800 from holding Kamada or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Biotechnology Industries vs. Kamada
Performance |
| Timeline |
| Clal Biotechnology |
| Kamada |
Clal Biotechnology and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Biotechnology and Kamada
The main advantage of trading using opposite Clal Biotechnology and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Biotechnology position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Clal Biotechnology vs. Kamada | Clal Biotechnology vs. BioLine RX | Clal Biotechnology vs. Evogene | Clal Biotechnology vs. Bezeq Israeli Telecommunication |
| Kamada vs. Netz Hotels | Kamada vs. Migdal Insurance | Kamada vs. Harel Insurance Investments | Kamada vs. Menora Miv Hld |
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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