Correlation Between Gilat Telecom and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Gilat Telecom and Analyst IMS 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 Gilat Telecom and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Telecom Global and Analyst IMS Investment, you can compare the effects of market volatilities on Gilat Telecom and Analyst IMS 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 Gilat Telecom with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Telecom and Analyst IMS.
Diversification Opportunities for Gilat Telecom and Analyst IMS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gilat and Analyst is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Telecom Global and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Gilat Telecom 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 Gilat Telecom Global are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Gilat Telecom i.e., Gilat Telecom and Analyst IMS go up and down completely randomly.
Pair Corralation between Gilat Telecom and Analyst IMS
Assuming the 90 days trading horizon Gilat Telecom Global is expected to under-perform the Analyst IMS. In addition to that, Gilat Telecom is 2.47 times more volatile than Analyst IMS Investment. It trades about -0.03 of its total potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.55 per unit of volatility. If you would invest 420,000 in Analyst IMS Investment on August 31, 2024 and sell it today you would earn a total of 40,200 from holding Analyst IMS Investment or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Telecom Global vs. Analyst IMS Investment
Performance |
| Timeline |
| Gilat Telecom Global |
| Analyst IMS Investment |
Gilat Telecom and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Telecom and Analyst IMS
The main advantage of trading using opposite Gilat Telecom and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Telecom position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Gilat Telecom vs. Bezeq Israeli Telecommunication | Gilat Telecom vs. Partner | Gilat Telecom vs. Satcom Systems | Gilat Telecom vs. Cellcom Israel |
| Analyst IMS vs. Menif Financial Services | Analyst IMS vs. Accel Solutions Group | Analyst IMS vs. Rani Zim Shopping | Analyst IMS vs. Mivtach Shamir |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |