Correlation Between YH Dimri and GFC Green
Can any of the company-specific risk be diversified away by investing in both YH Dimri and GFC Green 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 YH Dimri and GFC Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YH Dimri Construction and GFC Green Fields, you can compare the effects of market volatilities on YH Dimri and GFC Green 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 YH Dimri with a short position of GFC Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and GFC Green.
Diversification Opportunities for YH Dimri and GFC Green
Excellent diversification
The 3 months correlation between DIMRI and GFC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction and GFC Green Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFC Green Fields and YH Dimri 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 YH Dimri Construction are associated (or correlated) with GFC Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFC Green Fields has no effect on the direction of YH Dimri i.e., YH Dimri and GFC Green go up and down completely randomly.
Pair Corralation between YH Dimri and GFC Green
Assuming the 90 days trading horizon YH Dimri Construction is expected to under-perform the GFC Green. In addition to that, YH Dimri is 2.01 times more volatile than GFC Green Fields. It trades about -0.25 of its total potential returns per unit of risk. GFC Green Fields is currently generating about 0.3 per unit of volatility. If you would invest 115,000 in GFC Green Fields on November 28, 2024 and sell it today you would earn a total of 6,000 from holding GFC Green Fields or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YH Dimri Construction vs. GFC Green Fields
Performance |
| Timeline |
| YH Dimri Construction |
| GFC Green Fields |
YH Dimri and GFC Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YH Dimri and GFC Green
The main advantage of trading using opposite YH Dimri and GFC Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YH Dimri position performs unexpectedly, GFC Green 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 GFC Green will offset losses from the drop in GFC Green's long position.| YH Dimri vs. Azrieli Group | YH Dimri vs. Israel Canada | YH Dimri vs. Ashtrom Group | YH Dimri vs. Shikun Binui |
| GFC Green vs. Willy Food | GFC Green vs. Ormat Technologies | GFC Green vs. ICL Israel Chemicals | GFC Green vs. Imed Infinity Medical Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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