Correlation Between Gilat Satellite and Naspers
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Naspers 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 Naspers 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 Naspers Limited, you can compare the effects of market volatilities on Gilat Satellite and Naspers 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 Naspers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Naspers.
Diversification Opportunities for Gilat Satellite and Naspers
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gilat and Naspers is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Naspers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naspers Limited 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 Naspers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naspers Limited has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Naspers go up and down completely randomly.
Pair Corralation between Gilat Satellite and Naspers
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.69 times more return on investment than Naspers. However, Gilat Satellite Networks is 1.46 times less risky than Naspers. It trades about 0.14 of its potential returns per unit of risk. Naspers Limited is currently generating about -0.05 per unit of risk. If you would invest 670.00 in Gilat Satellite Networks on November 5, 2024 and sell it today you would earn a total of 45.00 from holding Gilat Satellite Networks or generate 6.72% 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. Naspers Limited
Performance |
| Timeline |
| Gilat Satellite Networks |
| Naspers Limited |
Gilat Satellite and Naspers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Naspers
The main advantage of trading using opposite Gilat Satellite and Naspers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Naspers 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 Naspers will offset losses from the drop in Naspers' long position.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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