Correlation Between Global Knafaim and Hiron Trade
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Hiron Trade 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 Hiron Trade 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 Hiron Trade Investments Industrial, you can compare the effects of market volatilities on Global Knafaim and Hiron Trade 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 Hiron Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Hiron Trade.
Diversification Opportunities for Global Knafaim and Hiron Trade
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Hiron is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Hiron Trade Investments Indust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiron Trade Investments 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 Hiron Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiron Trade Investments has no effect on the direction of Global Knafaim i.e., Global Knafaim and Hiron Trade go up and down completely randomly.
Pair Corralation between Global Knafaim and Hiron Trade
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to under-perform the Hiron Trade. In addition to that, Global Knafaim is 1.94 times more volatile than Hiron Trade Investments Industrial. It trades about -0.22 of its total potential returns per unit of risk. Hiron Trade Investments Industrial is currently generating about -0.39 per unit of volatility. If you would invest 25,280,000 in Hiron Trade Investments Industrial on November 28, 2024 and sell it today you would lose (1,781,000) from holding Hiron Trade Investments Industrial or give up 7.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Hiron Trade Investments Indust
Performance |
| Timeline |
| Global Knafaim Leasing |
| Hiron Trade Investments |
Global Knafaim and Hiron Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Hiron Trade
The main advantage of trading using opposite Global Knafaim and Hiron Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Hiron Trade 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 Hiron Trade will offset losses from the drop in Hiron Trade's long position.| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
| Hiron Trade vs. The Gold Bond | Hiron Trade vs. Isras Investment | Hiron Trade vs. Sella Real Estate | Hiron Trade vs. Villar |
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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