Correlation Between Gilat Telecom and IBI Inv
Can any of the company-specific risk be diversified away by investing in both Gilat Telecom and IBI Inv 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 IBI Inv 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 IBI Inv House, you can compare the effects of market volatilities on Gilat Telecom and IBI Inv 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 IBI Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Telecom and IBI Inv.
Diversification Opportunities for Gilat Telecom and IBI Inv
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gilat and IBI is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Telecom Global and IBI Inv House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBI Inv House 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 IBI Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBI Inv House has no effect on the direction of Gilat Telecom i.e., Gilat Telecom and IBI Inv go up and down completely randomly.
Pair Corralation between Gilat Telecom and IBI Inv
Assuming the 90 days trading horizon Gilat Telecom is expected to generate 1.04 times less return on investment than IBI Inv. In addition to that, Gilat Telecom is 2.24 times more volatile than IBI Inv House. It trades about 0.09 of its total potential returns per unit of risk. IBI Inv House is currently generating about 0.21 per unit of volatility. If you would invest 1,057,077 in IBI Inv House on November 1, 2024 and sell it today you would earn a total of 962,923 from holding IBI Inv House or generate 91.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.43% |
| Values | Daily Returns |
Gilat Telecom Global vs. IBI Inv House
Performance |
| Timeline |
| Gilat Telecom Global |
| IBI Inv House |
Gilat Telecom and IBI Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Telecom and IBI Inv
The main advantage of trading using opposite Gilat Telecom and IBI Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Telecom position performs unexpectedly, IBI Inv 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 IBI Inv will offset losses from the drop in IBI Inv's long position.| Gilat Telecom vs. Hiron Trade Investments Industrial | Gilat Telecom vs. Automatic Bank Services | Gilat Telecom vs. Aura Investments | Gilat Telecom vs. Bank Leumi Le Israel |
| IBI Inv vs. Batm Advanced Communications | IBI Inv vs. Gilat Telecom Global | IBI Inv vs. Bezeq Israeli Telecommunication | IBI Inv vs. Suny Cellular Communication |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |