Correlation Between Gilat Satellite and Kuaishou Technology
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Kuaishou Technology 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 Kuaishou Technology 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 Kuaishou Technology, you can compare the effects of market volatilities on Gilat Satellite and Kuaishou Technology 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 Kuaishou Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Kuaishou Technology.
Diversification Opportunities for Gilat Satellite and Kuaishou Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gilat and Kuaishou is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Kuaishou Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuaishou Technology 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 Kuaishou Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuaishou Technology has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Kuaishou Technology go up and down completely randomly.
Pair Corralation between Gilat Satellite and Kuaishou Technology
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.72 times more return on investment than Kuaishou Technology. However, Gilat Satellite Networks is 1.38 times less risky than Kuaishou Technology. It trades about 0.26 of its potential returns per unit of risk. Kuaishou Technology is currently generating about 0.13 per unit of risk. If you would invest 610.00 in Gilat Satellite Networks on November 4, 2024 and sell it today you would earn a total of 105.00 from holding Gilat Satellite Networks or generate 17.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Kuaishou Technology
Performance |
| Timeline |
| Gilat Satellite Networks |
| Kuaishou Technology |
Gilat Satellite and Kuaishou Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Kuaishou Technology
The main advantage of trading using opposite Gilat Satellite and Kuaishou Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Kuaishou Technology 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 Kuaishou Technology will offset losses from the drop in Kuaishou Technology's long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Kuaishou Technology vs. Tencent Holdings | Kuaishou Technology vs. DouYu International Holdings | Kuaishou Technology vs. Tencent Music Entertainment | Kuaishou Technology vs. Weibo Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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