Correlation Between Global Knafaim and Retailors
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Retailors 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 Retailors 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 Retailors, you can compare the effects of market volatilities on Global Knafaim and Retailors 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 Retailors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Retailors.
Diversification Opportunities for Global Knafaim and Retailors
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Retailors is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors 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 Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of Global Knafaim i.e., Global Knafaim and Retailors go up and down completely randomly.
Pair Corralation between Global Knafaim and Retailors
Assuming the 90 days trading horizon Global Knafaim Leasing is expected to generate 0.81 times more return on investment than Retailors. However, Global Knafaim Leasing is 1.24 times less risky than Retailors. It trades about 0.01 of its potential returns per unit of risk. Retailors is currently generating about -0.01 per unit of risk. If you would invest 7,200 in Global Knafaim Leasing on August 25, 2024 and sell it today you would earn a total of 20.00 from holding Global Knafaim Leasing or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Knafaim Leasing vs. Retailors
Performance |
| Timeline |
| Global Knafaim Leasing |
| Retailors |
Global Knafaim and Retailors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Retailors
The main advantage of trading using opposite Global Knafaim and Retailors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Retailors 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 Retailors will offset losses from the drop in Retailors' long position.| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Danel | Global Knafaim vs. Airport City |
| Retailors vs. Nice | Retailors vs. The Gold Bond | Retailors vs. Bank Leumi Le Israel | Retailors 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |