Correlation Between Golan Plastic and Mobile Max
Can any of the company-specific risk be diversified away by investing in both Golan Plastic and Mobile Max 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 Mobile Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golan Plastic and Mobile Max M, you can compare the effects of market volatilities on Golan Plastic and Mobile Max 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 Mobile Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golan Plastic and Mobile Max.
Diversification Opportunities for Golan Plastic and Mobile Max
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golan and Mobile is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Golan Plastic and Mobile Max M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Max M 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 Mobile Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Max M has no effect on the direction of Golan Plastic i.e., Golan Plastic and Mobile Max go up and down completely randomly.
Pair Corralation between Golan Plastic and Mobile Max
Assuming the 90 days trading horizon Golan Plastic is expected to generate 1.14 times more return on investment than Mobile Max. However, Golan Plastic is 1.14 times more volatile than Mobile Max M. It trades about 0.39 of its potential returns per unit of risk. Mobile Max M is currently generating about -0.38 per unit of risk. If you would invest 99,000 in Golan Plastic on September 1, 2024 and sell it today you would earn a total of 19,000 from holding Golan Plastic or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golan Plastic vs. Mobile Max M
Performance |
| Timeline |
| Golan Plastic |
| Mobile Max M |
Golan Plastic and Mobile Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golan Plastic and Mobile Max
The main advantage of trading using opposite Golan Plastic and Mobile Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golan Plastic position performs unexpectedly, Mobile Max 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 Mobile Max will offset losses from the drop in Mobile Max's long position.| Golan Plastic vs. Arad | Golan Plastic vs. Alony Hetz Properties | Golan Plastic vs. Airport City | Golan Plastic vs. Harel Insurance Investments |
| Mobile Max vs. TAT Technologies | Mobile Max vs. Bezeq Israeli Telecommunication | Mobile Max vs. Clal Biotechnology Industries | Mobile Max vs. Gamatronic Electronic Industries |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |