Correlation Between Delta Galil and Safe T
Can any of the company-specific risk be diversified away by investing in both Delta Galil and Safe T 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 Delta Galil and Safe T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Galil Industries and Safe T Group, you can compare the effects of market volatilities on Delta Galil and Safe T 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 Delta Galil with a short position of Safe T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Galil and Safe T.
Diversification Opportunities for Delta Galil and Safe T
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Safe is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Delta Galil Industries and Safe T Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe T Group and Delta Galil 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 Delta Galil Industries are associated (or correlated) with Safe T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe T Group has no effect on the direction of Delta Galil i.e., Delta Galil and Safe T go up and down completely randomly.
Pair Corralation between Delta Galil and Safe T
Assuming the 90 days trading horizon Delta Galil Industries is expected to generate 0.4 times more return on investment than Safe T. However, Delta Galil Industries is 2.5 times less risky than Safe T. It trades about 0.17 of its potential returns per unit of risk. Safe T Group is currently generating about -0.16 per unit of risk. If you would invest 2,006,000 in Delta Galil Industries on October 23, 2024 and sell it today you would earn a total of 78,000 from holding Delta Galil Industries or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Galil Industries vs. Safe T Group
Performance |
| Timeline |
| Delta Galil Industries |
| Safe T Group |
Delta Galil and Safe T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Galil and Safe T
The main advantage of trading using opposite Delta Galil and Safe T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Galil position performs unexpectedly, Safe T 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 Safe T will offset losses from the drop in Safe T's long position.| Delta Galil vs. Unic tech Limited Partnership | Delta Galil vs. Clal Biotechnology Industries | Delta Galil vs. Inrom Construction Industries | Delta Galil vs. Blender Financial Technologies |
| Safe T vs. Iargento Hi Tech | Safe T vs. Altshuler Shaham Financial | Safe T vs. Scope Metals Group | Safe T vs. Payment Financial Technologies |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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