Correlation Between Global Knafaim and Rapac Communication
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Rapac Communication 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 Rapac Communication 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 Rapac Communication Infrastructure, you can compare the effects of market volatilities on Global Knafaim and Rapac Communication 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 Rapac Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Rapac Communication.
Diversification Opportunities for Global Knafaim and Rapac Communication
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Rapac is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Rapac Communication Infrastruc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapac Communication 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 Rapac Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapac Communication has no effect on the direction of Global Knafaim i.e., Global Knafaim and Rapac Communication go up and down completely randomly.
Pair Corralation between Global Knafaim and Rapac Communication
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to under-perform the Rapac Communication. In addition to that, Global Knafaim is 1.06 times more volatile than Rapac Communication Infrastructure. It trades about -0.16 of its total potential returns per unit of risk. Rapac Communication Infrastructure is currently generating about 0.34 per unit of volatility. If you would invest 339,900 in Rapac Communication Infrastructure on November 27, 2024 and sell it today you would earn a total of 38,100 from holding Rapac Communication Infrastructure or generate 11.21% 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. Rapac Communication Infrastruc
Performance |
| Timeline |
| Global Knafaim Leasing |
| Rapac Communication |
Global Knafaim and Rapac Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Rapac Communication
The main advantage of trading using opposite Global Knafaim and Rapac Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Rapac Communication 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 Rapac Communication will offset losses from the drop in Rapac Communication's long position.| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
| Rapac Communication vs. EN Shoham Business | Rapac Communication vs. Accel Solutions Group | Rapac Communication vs. Mivtach Shamir | Rapac Communication vs. Rani Zim Shopping |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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