Correlation Between Gilat Satellite and Auto Trader
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Auto Trader 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 Gilat Satellite and Auto Trader into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Auto Trader Group, you can compare the effects of market volatilities on Gilat Satellite and Auto Trader 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 Gilat Satellite with a short position of Auto Trader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Auto Trader.
Diversification Opportunities for Gilat Satellite and Auto Trader
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gilat and Auto is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Auto Trader Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auto Trader Group and Gilat Satellite 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 Gilat Satellite Networks are associated (or correlated) with Auto Trader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auto Trader Group has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Auto Trader go up and down completely randomly.
Pair Corralation between Gilat Satellite and Auto Trader
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 2.56 times more return on investment than Auto Trader. However, Gilat Satellite is 2.56 times more volatile than Auto Trader Group. It trades about 0.39 of its potential returns per unit of risk. Auto Trader Group is currently generating about -0.2 per unit of risk. If you would invest 586.00 in Gilat Satellite Networks on October 26, 2024 and sell it today you would earn a total of 125.00 from holding Gilat Satellite Networks or generate 21.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Auto Trader Group
Performance |
| Timeline |
| Gilat Satellite Networks |
| Auto Trader Group |
Gilat Satellite and Auto Trader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Auto Trader
The main advantage of trading using opposite Gilat Satellite and Auto Trader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Auto Trader 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 Auto Trader will offset losses from the drop in Auto Trader's long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Auto Trader vs. Tinybeans Group Limited | Auto Trader vs. DGTL Holdings | Auto Trader vs. Sabio Holdings | Auto Trader vs. Zoomd 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |