Correlation Between Galileo Tech and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Galileo Tech and Delek Automotive 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 Galileo Tech and Delek Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galileo Tech and Delek Automotive Systems, you can compare the effects of market volatilities on Galileo Tech and Delek Automotive 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 Galileo Tech with a short position of Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galileo Tech and Delek Automotive.
Diversification Opportunities for Galileo Tech and Delek Automotive
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galileo and Delek is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Galileo Tech and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems and Galileo Tech 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 Galileo Tech are associated (or correlated) with Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Galileo Tech i.e., Galileo Tech and Delek Automotive go up and down completely randomly.
Pair Corralation between Galileo Tech and Delek Automotive
Assuming the 90 days trading horizon Galileo Tech is expected to under-perform the Delek Automotive. In addition to that, Galileo Tech is 2.08 times more volatile than Delek Automotive Systems. It trades about -0.12 of its total potential returns per unit of risk. Delek Automotive Systems is currently generating about 0.2 per unit of volatility. If you would invest 263,500 in Delek Automotive Systems on September 12, 2024 and sell it today you would earn a total of 19,500 from holding Delek Automotive Systems or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galileo Tech vs. Delek Automotive Systems
Performance |
| Timeline |
| Galileo Tech |
| Delek Automotive Systems |
Galileo Tech and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galileo Tech and Delek Automotive
The main advantage of trading using opposite Galileo Tech and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galileo Tech position performs unexpectedly, Delek Automotive 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 Delek Automotive will offset losses from the drop in Delek Automotive's long position.| Galileo Tech vs. Delek Automotive Systems | Galileo Tech vs. Alony Hetz Properties | Galileo Tech vs. Enlight Renewable Energy | Galileo Tech vs. Energix Renewable Energies |
| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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