Correlation Between Golan Plastic and Globrands
Can any of the company-specific risk be diversified away by investing in both Golan Plastic and Globrands 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 Globrands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golan Plastic and Globrands Group, you can compare the effects of market volatilities on Golan Plastic and Globrands 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 Globrands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golan Plastic and Globrands.
Diversification Opportunities for Golan Plastic and Globrands
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Golan and Globrands is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Golan Plastic and Globrands Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globrands Group 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 Globrands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globrands Group has no effect on the direction of Golan Plastic i.e., Golan Plastic and Globrands go up and down completely randomly.
Pair Corralation between Golan Plastic and Globrands
Assuming the 90 days trading horizon Golan Plastic is expected to generate 2.65 times less return on investment than Globrands. In addition to that, Golan Plastic is 1.11 times more volatile than Globrands Group. It trades about 0.06 of its total potential returns per unit of risk. Globrands Group is currently generating about 0.16 per unit of volatility. If you would invest 4,730,000 in Globrands Group on November 3, 2024 and sell it today you would earn a total of 170,000 from holding Globrands Group or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golan Plastic vs. Globrands Group
Performance |
| Timeline |
| Golan Plastic |
| Globrands Group |
Golan Plastic and Globrands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golan Plastic and Globrands
The main advantage of trading using opposite Golan Plastic and Globrands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golan Plastic position performs unexpectedly, Globrands 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 Globrands will offset losses from the drop in Globrands' long position.| Golan Plastic vs. Brimag L | Golan Plastic vs. Neto ME Holdings | Golan Plastic vs. Palram | Golan Plastic vs. Ludan Engineering Co |
| Globrands vs. Neto ME Holdings | Globrands vs. Delek Automotive Systems | Globrands vs. Kerur Holdings | Globrands vs. Ram On Investments and |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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