Correlation Between Global Knafaim and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Global Knafaim and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Global Knafaim and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Knafaim and Suny Cellular.
Diversification Opportunities for Global Knafaim and Suny Cellular
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Suny is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Global Knafaim Leasing and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Global Knafaim i.e., Global Knafaim and Suny Cellular go up and down completely randomly.
Pair Corralation between Global Knafaim and Suny Cellular
Assuming the 90 days trading horizon Global Knafaim is expected to generate 1.14 times less return on investment than Suny Cellular. But when comparing it to its historical volatility, Global Knafaim Leasing is 1.05 times less risky than Suny Cellular. It trades about 0.1 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,845 in Suny Cellular Communication on September 1, 2024 and sell it today you would earn a total of 3,855 from holding Suny Cellular Communication or generate 49.14% 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. Suny Cellular Communication
Performance |
| Timeline |
| Global Knafaim Leasing |
| Suny Cellular Commun |
Global Knafaim and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Knafaim and Suny Cellular
The main advantage of trading using opposite Global Knafaim and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Knafaim position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Airport City | Global Knafaim vs. Harel Insurance Investments |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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