Correlation Between Golan Plastic and Danel
Can any of the company-specific risk be diversified away by investing in both Golan Plastic and Danel 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 Golan Plastic and Danel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golan Plastic and Danel, you can compare the effects of market volatilities on Golan Plastic and Danel 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 Golan Plastic with a short position of Danel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golan Plastic and Danel.
Diversification Opportunities for Golan Plastic and Danel
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Golan and Danel is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Golan Plastic and Danel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danel and Golan Plastic 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 Golan Plastic are associated (or correlated) with Danel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danel has no effect on the direction of Golan Plastic i.e., Golan Plastic and Danel go up and down completely randomly.
Pair Corralation between Golan Plastic and Danel
Assuming the 90 days trading horizon Golan Plastic is expected to under-perform the Danel. In addition to that, Golan Plastic is 1.03 times more volatile than Danel. It trades about -0.06 of its total potential returns per unit of risk. Danel is currently generating about 0.18 per unit of volatility. If you would invest 4,035,000 in Danel on December 4, 2024 and sell it today you would earn a total of 215,000 from holding Danel or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golan Plastic vs. Danel
Performance |
| Timeline |
| Golan Plastic |
| Danel |
Golan Plastic and Danel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golan Plastic and Danel
The main advantage of trading using opposite Golan Plastic and Danel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golan Plastic position performs unexpectedly, Danel 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 Danel will offset losses from the drop in Danel's long position.| Golan Plastic vs. Brimag L | Golan Plastic vs. Neto ME Holdings | Golan Plastic vs. Palram | Golan Plastic vs. Ludan Engineering Co |
| Danel vs. Hilan | Danel vs. Fattal 1998 Holdings | Danel vs. Matrix | Danel vs. Bezeq Israeli Telecommunication |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |