Correlation Between Gold Bond and Delek
Can any of the company-specific risk be diversified away by investing in both Gold Bond and Delek 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 Delek 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 Delek Group, you can compare the effects of market volatilities on Gold Bond and Delek 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 Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bond and Delek.
Diversification Opportunities for Gold Bond and Delek
Very poor diversification
The 3 months correlation between Gold and Delek is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bond and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group 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 Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Gold Bond i.e., Gold Bond and Delek go up and down completely randomly.
Pair Corralation between Gold Bond and Delek
Assuming the 90 days trading horizon The Gold Bond is expected to generate 1.3 times more return on investment than Delek. However, Gold Bond is 1.3 times more volatile than Delek Group. It trades about 0.14 of its potential returns per unit of risk. Delek Group is currently generating about 0.17 per unit of risk. If you would invest 1,252,000 in The Gold Bond on August 28, 2024 and sell it today you would earn a total of 202,000 from holding The Gold Bond or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gold Bond vs. Delek Group
Performance |
| Timeline |
| Gold Bond |
| Delek Group |
Gold Bond and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bond and Delek
The main advantage of trading using opposite Gold Bond and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bond position performs unexpectedly, Delek 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 will offset losses from the drop in Delek'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 |
| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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