Correlation Between Delek and Galileo Tech
Can any of the company-specific risk be diversified away by investing in both Delek and Galileo Tech 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 Delek and Galileo Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Galileo Tech, you can compare the effects of market volatilities on Delek and Galileo Tech 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 Delek with a short position of Galileo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Galileo Tech.
Diversification Opportunities for Delek and Galileo Tech
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delek and Galileo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Galileo Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galileo Tech and Delek 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 Delek Group are associated (or correlated) with Galileo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galileo Tech has no effect on the direction of Delek i.e., Delek and Galileo Tech go up and down completely randomly.
Pair Corralation between Delek and Galileo Tech
Assuming the 90 days trading horizon Delek Group is expected to generate 0.38 times more return on investment than Galileo Tech. However, Delek Group is 2.63 times less risky than Galileo Tech. It trades about 0.14 of its potential returns per unit of risk. Galileo Tech is currently generating about -0.03 per unit of risk. If you would invest 3,725,420 in Delek Group on September 3, 2024 and sell it today you would earn a total of 1,147,580 from holding Delek Group or generate 30.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Galileo Tech
Performance |
| Timeline |
| Delek Group |
| Galileo Tech |
Delek and Galileo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Galileo Tech
The main advantage of trading using opposite Delek and Galileo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Galileo Tech 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 Galileo Tech will offset losses from the drop in Galileo Tech's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Galileo Tech vs. Nextgen | Galileo Tech vs. Gencell | Galileo Tech vs. Bonus Biogroup | Galileo Tech vs. Intelicanna |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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