Correlation Between Gilat Satellite and Knightscope
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Knightscope 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 Knightscope 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 Knightscope, you can compare the effects of market volatilities on Gilat Satellite and Knightscope 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 Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Knightscope.
Diversification Opportunities for Gilat Satellite and Knightscope
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gilat and Knightscope is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope 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 Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Knightscope go up and down completely randomly.
Pair Corralation between Gilat Satellite and Knightscope
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.29 times more return on investment than Knightscope. However, Gilat Satellite Networks is 3.4 times less risky than Knightscope. It trades about 0.03 of its potential returns per unit of risk. Knightscope is currently generating about 0.0 per unit of risk. If you would invest 643.00 in Gilat Satellite Networks on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Gilat Satellite Networks or generate 11.2% 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. Knightscope
Performance |
| Timeline |
| Gilat Satellite Networks |
| Knightscope |
Gilat Satellite and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Knightscope
The main advantage of trading using opposite Gilat Satellite and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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