Correlation Between Global Knafaim and Mydas Real
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Mydas Real 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 Mydas Real 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 Mydas Real Estate, you can compare the effects of market volatilities on Global Knafaim and Mydas Real 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 Mydas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Mydas Real.
Diversification Opportunities for Global Knafaim and Mydas Real
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Mydas is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Mydas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mydas Real Estate 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 Mydas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mydas Real Estate has no effect on the direction of Global Knafaim i.e., Global Knafaim and Mydas Real go up and down completely randomly.
Pair Corralation between Global Knafaim and Mydas Real
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to generate 0.62 times more return on investment than Mydas Real. However, Global Knafaim Leasing is 1.62 times less risky than Mydas Real. It trades about -0.16 of its potential returns per unit of risk. Mydas Real Estate is currently generating about -0.19 per unit of risk. If you would invest 8,670 in Global Knafaim Leasing on November 27, 2024 and sell it today you would lose (480.00) from holding Global Knafaim Leasing or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Mydas Real Estate
Performance |
| Timeline |
| Global Knafaim Leasing |
| Mydas Real Estate |
Global Knafaim and Mydas Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Mydas Real
The main advantage of trading using opposite Global Knafaim and Mydas Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Mydas Real 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 Mydas Real will offset losses from the drop in Mydas Real's long position.| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
| Mydas Real vs. Sofwave Medical | Mydas Real vs. Hiron Trade Investments Industrial | Mydas Real vs. Alrov Properties Lodgings | Mydas Real vs. Discount Investment Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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