Correlation Between Gilat Telecom and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Gilat Telecom and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Gilat Telecom and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Telecom and Suny Cellular.
Diversification Opportunities for Gilat Telecom and Suny Cellular
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gilat and Suny is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Telecom Global and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Gilat Telecom i.e., Gilat Telecom and Suny Cellular go up and down completely randomly.
Pair Corralation between Gilat Telecom and Suny Cellular
Assuming the 90 days trading horizon Gilat Telecom Global is expected to under-perform the Suny Cellular. In addition to that, Gilat Telecom is 1.42 times more volatile than Suny Cellular Communication. It trades about -0.02 of its total potential returns per unit of risk. Suny Cellular Communication is currently generating about -0.02 per unit of volatility. If you would invest 12,970 in Suny Cellular Communication on November 3, 2024 and sell it today you would lose (120.00) from holding Suny Cellular Communication or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Telecom Global vs. Suny Cellular Communication
Performance |
| Timeline |
| Gilat Telecom Global |
| Suny Cellular Commun |
Gilat Telecom and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Telecom and Suny Cellular
The main advantage of trading using opposite Gilat Telecom and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Telecom position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Gilat Telecom vs. Bezeq Israeli Telecommunication | Gilat Telecom vs. Partner | Gilat Telecom vs. Satcom Systems | Gilat Telecom vs. Cellcom Israel |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |