Correlation Between GFC Green and Isras Investment
Can any of the company-specific risk be diversified away by investing in both GFC Green and Isras Investment 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 GFC Green and Isras Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFC Green Fields and Isras Investment, you can compare the effects of market volatilities on GFC Green and Isras Investment 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 GFC Green with a short position of Isras Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFC Green and Isras Investment.
Diversification Opportunities for GFC Green and Isras Investment
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GFC and Isras is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GFC Green Fields and Isras Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isras Investment and GFC Green 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 GFC Green Fields are associated (or correlated) with Isras Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isras Investment has no effect on the direction of GFC Green i.e., GFC Green and Isras Investment go up and down completely randomly.
Pair Corralation between GFC Green and Isras Investment
Assuming the 90 days trading horizon GFC Green Fields is expected to under-perform the Isras Investment. In addition to that, GFC Green is 1.59 times more volatile than Isras Investment. It trades about -0.02 of its total potential returns per unit of risk. Isras Investment is currently generating about 0.15 per unit of volatility. If you would invest 6,752,112 in Isras Investment on September 3, 2024 and sell it today you would earn a total of 1,675,888 from holding Isras Investment or generate 24.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFC Green Fields vs. Isras Investment
Performance |
| Timeline |
| GFC Green Fields |
| Isras Investment |
GFC Green and Isras Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFC Green and Isras Investment
The main advantage of trading using opposite GFC Green and Isras Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFC Green position performs unexpectedly, Isras Investment 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 Isras Investment will offset losses from the drop in Isras Investment's long position.| GFC Green vs. Bezeq Israeli Telecommunication | GFC Green vs. El Al Israel | GFC Green vs. Bank Leumi Le Israel | GFC Green vs. Elbit Systems |
| Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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