Correlation Between Delek and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Delek and Gan Shmuel 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 Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Gan Shmuel, you can compare the effects of market volatilities on Delek and Gan Shmuel 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 Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Gan Shmuel.
Diversification Opportunities for Delek and Gan Shmuel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delek and Gan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel 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 Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Delek i.e., Delek and Gan Shmuel go up and down completely randomly.
Pair Corralation between Delek and Gan Shmuel
Assuming the 90 days trading horizon Delek is expected to generate 1.87 times less return on investment than Gan Shmuel. In addition to that, Delek is 1.22 times more volatile than Gan Shmuel. It trades about 0.07 of its total potential returns per unit of risk. Gan Shmuel is currently generating about 0.16 per unit of volatility. If you would invest 105,985 in Gan Shmuel on November 2, 2024 and sell it today you would earn a total of 271,415 from holding Gan Shmuel or generate 256.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Gan Shmuel
Performance |
| Timeline |
| Delek Group |
| Gan Shmuel |
Delek and Gan Shmuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Gan Shmuel
The main advantage of trading using opposite Delek and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Gan Shmuel vs. Neto ME Holdings | Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Salomon A Angel | Gan Shmuel vs. Sano Brunos Enterprises |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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