Correlation Between Globrands and Israel Shipyards
Can any of the company-specific risk be diversified away by investing in both Globrands and Israel Shipyards 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 Globrands and Israel Shipyards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globrands Group and Israel Shipyards, you can compare the effects of market volatilities on Globrands and Israel Shipyards 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 Globrands with a short position of Israel Shipyards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globrands and Israel Shipyards.
Diversification Opportunities for Globrands and Israel Shipyards
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Globrands and Israel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Globrands Group and Israel Shipyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Shipyards and Globrands 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 Globrands Group are associated (or correlated) with Israel Shipyards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Shipyards has no effect on the direction of Globrands i.e., Globrands and Israel Shipyards go up and down completely randomly.
Pair Corralation between Globrands and Israel Shipyards
Assuming the 90 days trading horizon Globrands Group is expected to generate 0.64 times more return on investment than Israel Shipyards. However, Globrands Group is 1.57 times less risky than Israel Shipyards. It trades about 0.09 of its potential returns per unit of risk. Israel Shipyards is currently generating about 0.05 per unit of risk. If you would invest 3,859,168 in Globrands Group on August 29, 2024 and sell it today you would earn a total of 807,832 from holding Globrands Group or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globrands Group vs. Israel Shipyards
Performance |
| Timeline |
| Globrands Group |
| Israel Shipyards |
Globrands and Israel Shipyards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globrands and Israel Shipyards
The main advantage of trading using opposite Globrands and Israel Shipyards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globrands position performs unexpectedly, Israel Shipyards 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 Israel Shipyards will offset losses from the drop in Israel Shipyards' long position.| Globrands vs. Neto ME Holdings | Globrands vs. Delek Automotive Systems | Globrands vs. Kerur Holdings | Globrands vs. Ram On Investments and |
| Israel Shipyards vs. Israel Corp | Israel Shipyards vs. Israel Opportunity | Israel Shipyards vs. Israel Op L | Israel Shipyards vs. Israel Discount Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |