Correlation Between CDW Corp and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both CDW Corp 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 CDW Corp and Gilat Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Gilat Satellite Networks, you can compare the effects of market volatilities on CDW Corp 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 CDW Corp with a short position of Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Gilat Satellite.
Diversification Opportunities for CDW Corp and Gilat Satellite
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDW and Gilat is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp 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 CDW Corp 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 CDW Corp 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 CDW Corp i.e., CDW Corp and Gilat Satellite go up and down completely randomly.
Pair Corralation between CDW Corp and Gilat Satellite
Considering the 90-day investment horizon CDW Corp is expected to under-perform the Gilat Satellite. But the stock apears to be less risky and, when comparing its historical volatility, CDW Corp is 1.35 times less risky than Gilat Satellite. The stock trades about -0.05 of its potential returns per unit of risk. The Gilat Satellite Networks is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 633.00 in Gilat Satellite Networks on August 28, 2024 and sell it today you would lose (78.00) from holding Gilat Satellite Networks or give up 12.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDW Corp vs. Gilat Satellite Networks
Performance |
| Timeline |
| CDW Corp |
| Gilat Satellite Networks |
CDW Corp and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Gilat Satellite
The main advantage of trading using opposite CDW Corp and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp 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.| CDW Corp vs. CACI International | CDW Corp vs. Jack Henry Associates | CDW Corp vs. Broadridge Financial Solutions | CDW Corp vs. ExlService Holdings |
| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |