Correlation Between Electreon Wireless and Gilat Telecom
Can any of the company-specific risk be diversified away by investing in both Electreon Wireless and Gilat Telecom 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 Electreon Wireless and Gilat Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electreon Wireless and Gilat Telecom Global, you can compare the effects of market volatilities on Electreon Wireless and Gilat Telecom 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 Electreon Wireless with a short position of Gilat Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electreon Wireless and Gilat Telecom.
Diversification Opportunities for Electreon Wireless and Gilat Telecom
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electreon and Gilat is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Electreon Wireless and Gilat Telecom Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Telecom Global and Electreon Wireless 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 Electreon Wireless are associated (or correlated) with Gilat Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Telecom Global has no effect on the direction of Electreon Wireless i.e., Electreon Wireless and Gilat Telecom go up and down completely randomly.
Pair Corralation between Electreon Wireless and Gilat Telecom
Assuming the 90 days trading horizon Electreon Wireless is expected to generate 1.15 times more return on investment than Gilat Telecom. However, Electreon Wireless is 1.15 times more volatile than Gilat Telecom Global. It trades about 0.11 of its potential returns per unit of risk. Gilat Telecom Global is currently generating about 0.1 per unit of risk. If you would invest 980,000 in Electreon Wireless on November 3, 2024 and sell it today you would earn a total of 1,194,000 from holding Electreon Wireless or generate 121.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electreon Wireless vs. Gilat Telecom Global
Performance |
| Timeline |
| Electreon Wireless |
| Gilat Telecom Global |
Electreon Wireless and Gilat Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electreon Wireless and Gilat Telecom
The main advantage of trading using opposite Electreon Wireless and Gilat Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electreon Wireless position performs unexpectedly, Gilat Telecom 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 Telecom will offset losses from the drop in Gilat Telecom's long position.| Electreon Wireless vs. Augwind Energy Tech | Electreon Wireless vs. Enlight Renewable Energy | Electreon Wireless vs. Fattal 1998 Holdings | Electreon Wireless vs. Energix Renewable Energies |
| Gilat Telecom vs. Unicorn Technologies | Gilat Telecom vs. Nrgene Technologies | Gilat Telecom vs. Millennium Food Tech LP | Gilat Telecom vs. Blender 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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