Correlation Between Gamatronic Electronic and Seach Medical
Can any of the company-specific risk be diversified away by investing in both Gamatronic Electronic and Seach Medical 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 Gamatronic Electronic and Seach Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamatronic Electronic Industries and Seach Medical Group, you can compare the effects of market volatilities on Gamatronic Electronic and Seach Medical 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 Gamatronic Electronic with a short position of Seach Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamatronic Electronic and Seach Medical.
Diversification Opportunities for Gamatronic Electronic and Seach Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamatronic and Seach is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gamatronic Electronic Industri and Seach Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seach Medical Group and Gamatronic Electronic 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 Gamatronic Electronic Industries are associated (or correlated) with Seach Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seach Medical Group has no effect on the direction of Gamatronic Electronic i.e., Gamatronic Electronic and Seach Medical go up and down completely randomly.
Pair Corralation between Gamatronic Electronic and Seach Medical
Assuming the 90 days trading horizon Gamatronic Electronic Industries is expected to under-perform the Seach Medical. In addition to that, Gamatronic Electronic is 1.22 times more volatile than Seach Medical Group. It trades about -0.08 of its total potential returns per unit of risk. Seach Medical Group is currently generating about 0.08 per unit of volatility. If you would invest 26,670 in Seach Medical Group on September 4, 2024 and sell it today you would earn a total of 600.00 from holding Seach Medical Group or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamatronic Electronic Industri vs. Seach Medical Group
Performance |
| Timeline |
| Gamatronic Electronic |
| Seach Medical Group |
Gamatronic Electronic and Seach Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamatronic Electronic and Seach Medical
The main advantage of trading using opposite Gamatronic Electronic and Seach Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamatronic Electronic position performs unexpectedly, Seach Medical 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 Seach Medical will offset losses from the drop in Seach Medical's long position.| Gamatronic Electronic vs. Direct Capital Investments | Gamatronic Electronic vs. Brainsway | Gamatronic Electronic vs. Mivne Real Estate | Gamatronic Electronic vs. Photomyne |
| Seach Medical vs. Bezeq Israeli Telecommunication | Seach Medical vs. Rapac Communication Infrastructure | Seach Medical vs. Ilex Medical | Seach Medical vs. Electreon Wireless |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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