Correlation Between Global Knafaim and Scope Metals
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Scope Metals 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 Scope Metals 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 Scope Metals Group, you can compare the effects of market volatilities on Global Knafaim and Scope Metals 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 Scope Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Scope Metals.
Diversification Opportunities for Global Knafaim and Scope Metals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Scope is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Scope Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scope Metals Group 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 Scope Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scope Metals Group has no effect on the direction of Global Knafaim i.e., Global Knafaim and Scope Metals go up and down completely randomly.
Pair Corralation between Global Knafaim and Scope Metals
Assuming the 90 days trading horizon Global Knafaim is expected to generate 2.96 times less return on investment than Scope Metals. In addition to that, Global Knafaim is 1.03 times more volatile than Scope Metals Group. It trades about 0.01 of its total potential returns per unit of risk. Scope Metals Group is currently generating about 0.04 per unit of volatility. If you would invest 1,194,000 in Scope Metals Group on August 25, 2024 and sell it today you would earn a total of 155,000 from holding Scope Metals Group or generate 12.98% 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. Scope Metals Group
Performance |
| Timeline |
| Global Knafaim Leasing |
| Scope Metals Group |
Global Knafaim and Scope Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Scope Metals
The main advantage of trading using opposite Global Knafaim and Scope Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Scope Metals 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 Scope Metals will offset losses from the drop in Scope Metals' long position.| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Danel | Global Knafaim vs. Airport City |
| Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
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
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |