Correlation Between Global Knafaim and Homebiogas
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Homebiogas 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 Homebiogas 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 Homebiogas, you can compare the effects of market volatilities on Global Knafaim and Homebiogas 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 Homebiogas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Homebiogas.
Diversification Opportunities for Global Knafaim and Homebiogas
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Homebiogas is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Homebiogas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Homebiogas 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 Homebiogas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Homebiogas has no effect on the direction of Global Knafaim i.e., Global Knafaim and Homebiogas go up and down completely randomly.
Pair Corralation between Global Knafaim and Homebiogas
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to generate 0.52 times more return on investment than Homebiogas. However, Global Knafaim Leasing is 1.93 times less risky than Homebiogas. It trades about -0.16 of its potential returns per unit of risk. Homebiogas is currently generating about -0.46 per unit of risk. If you would invest 7,440 in Global Knafaim Leasing on September 1, 2024 and sell it today you would lose (410.00) from holding Global Knafaim Leasing or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Homebiogas
Performance |
| Timeline |
| Global Knafaim Leasing |
| Homebiogas |
Global Knafaim and Homebiogas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Homebiogas
The main advantage of trading using opposite Global Knafaim and Homebiogas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Homebiogas 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 Homebiogas will offset losses from the drop in Homebiogas' long position.| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Airport City | Global Knafaim vs. Harel Insurance Investments |
| Homebiogas vs. Migdal Insurance | Homebiogas vs. Clal Insurance Enterprises | Homebiogas vs. Veridis Environment | Homebiogas vs. ICL Israel Chemicals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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