Correlation Between Gold Bond and Erika Carmel
Can any of the company-specific risk be diversified away by investing in both Gold Bond and Erika Carmel 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 Gold Bond and Erika Carmel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gold Bond and Erika Carmel, you can compare the effects of market volatilities on Gold Bond and Erika Carmel 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 Gold Bond with a short position of Erika Carmel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bond and Erika Carmel.
Diversification Opportunities for Gold Bond and Erika Carmel
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gold and Erika is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bond and Erika Carmel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erika Carmel and Gold Bond 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 The Gold Bond are associated (or correlated) with Erika Carmel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erika Carmel has no effect on the direction of Gold Bond i.e., Gold Bond and Erika Carmel go up and down completely randomly.
Pair Corralation between Gold Bond and Erika Carmel
Assuming the 90 days trading horizon The Gold Bond is expected to generate 0.43 times more return on investment than Erika Carmel. However, The Gold Bond is 2.34 times less risky than Erika Carmel. It trades about 0.27 of its potential returns per unit of risk. Erika Carmel is currently generating about -0.15 per unit of risk. If you would invest 1,371,000 in The Gold Bond on August 30, 2024 and sell it today you would earn a total of 104,000 from holding The Gold Bond or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
The Gold Bond vs. Erika Carmel
Performance |
| Timeline |
| Gold Bond |
| Erika Carmel |
Gold Bond and Erika Carmel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bond and Erika Carmel
The main advantage of trading using opposite Gold Bond and Erika Carmel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bond position performs unexpectedly, Erika Carmel 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 Erika Carmel will offset losses from the drop in Erika Carmel's long position.| Gold Bond vs. Big Shopping Centers | Gold Bond vs. Al Bad Massuot Yitzhak | Gold Bond vs. Harel Insurance Investments | Gold Bond vs. Palram |
| Erika Carmel vs. One Software Technologies | Erika Carmel vs. Magic Software Enterprises | Erika Carmel vs. Sofwave Medical | Erika Carmel vs. Scope Metals Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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