Correlation Between Global Knafaim and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging, you can compare the effects of market volatilities on Global Knafaim and Elbit Imaging 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 Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Elbit Imaging.
Diversification Opportunities for Global Knafaim and Elbit Imaging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Elbit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging 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 Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Global Knafaim i.e., Global Knafaim and Elbit Imaging go up and down completely randomly.
Pair Corralation between Global Knafaim and Elbit Imaging
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to under-perform the Elbit Imaging. In addition to that, Global Knafaim is 1.47 times more volatile than Elbit Imaging. It trades about -0.15 of its total potential returns per unit of risk. Elbit Imaging is currently generating about 0.41 per unit of volatility. If you would invest 47,400 in Elbit Imaging on September 3, 2024 and sell it today you would earn a total of 4,500 from holding Elbit Imaging or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Elbit Imaging
Performance |
| Timeline |
| Global Knafaim Leasing |
| Elbit Imaging |
Global Knafaim and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Elbit Imaging
The main advantage of trading using opposite Global Knafaim and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
| Elbit Imaging vs. Multi Retail Group | Elbit Imaging vs. Scope Metals Group | Elbit Imaging vs. Global Knafaim Leasing | Elbit Imaging vs. Harel Insurance Investments |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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