Correlation Between Global Knafaim and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Analyst IMS 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 Global Knafaim and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Knafaim Leasing and Analyst IMS Investment, you can compare the effects of market volatilities on Global Knafaim and Analyst IMS 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 Global Knafaim with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Analyst IMS.
Diversification Opportunities for Global Knafaim and Analyst IMS
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Analyst is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Global Knafaim 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 Global Knafaim Leasing are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Global Knafaim i.e., Global Knafaim and Analyst IMS go up and down completely randomly.
Pair Corralation between Global Knafaim and Analyst IMS
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to under-perform the Analyst IMS. But the stock apears to be less risky and, when comparing its historical volatility, Global Knafaim Leasing is 1.02 times less risky than Analyst IMS. The stock trades about -0.22 of its potential returns per unit of risk. The Analyst IMS Investment is currently generating about 0.64 of returns per unit of risk over similar time horizon. If you would invest 692,500 in Analyst IMS Investment on November 28, 2024 and sell it today you would earn a total of 179,600 from holding Analyst IMS Investment or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Analyst IMS Investment
Performance |
| Timeline |
| Global Knafaim Leasing |
| Analyst IMS Investment |
Global Knafaim and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Analyst IMS
The main advantage of trading using opposite Global Knafaim and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
| Analyst IMS vs. Iargento Hi Tech | Analyst IMS vs. Hiron Trade Investments Industrial | Analyst IMS vs. Rimon Consulting Management | Analyst IMS vs. B Communications |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |