Correlation Between Global Knafaim and Melisron
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Melisron 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 Melisron 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 Melisron, you can compare the effects of market volatilities on Global Knafaim and Melisron 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 Melisron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Melisron.
Diversification Opportunities for Global Knafaim and Melisron
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Melisron is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Melisron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melisron 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 Melisron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melisron has no effect on the direction of Global Knafaim i.e., Global Knafaim and Melisron go up and down completely randomly.
Pair Corralation between Global Knafaim and Melisron
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to under-perform the Melisron. In addition to that, Global Knafaim is 1.25 times more volatile than Melisron. It trades about -0.16 of its total potential returns per unit of risk. Melisron is currently generating about 0.3 per unit of volatility. If you would invest 2,975,000 in Melisron on September 1, 2024 and sell it today you would earn a total of 245,000 from holding Melisron or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Melisron
Performance |
| Timeline |
| Global Knafaim Leasing |
| Melisron |
Global Knafaim and Melisron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Melisron
The main advantage of trading using opposite Global Knafaim and Melisron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Melisron 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 Melisron will offset losses from the drop in Melisron's long position.| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Airport City | Global Knafaim 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |