Correlation Between Gold Bond and YD More
Can any of the company-specific risk be diversified away by investing in both Gold Bond and YD More 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 YD More 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 YD More Investments, you can compare the effects of market volatilities on Gold Bond and YD More 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 YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bond and YD More.
Diversification Opportunities for Gold Bond and YD More
Significant diversification
The 3 months correlation between Gold and MRIN is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bond and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments 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 YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Gold Bond i.e., Gold Bond and YD More go up and down completely randomly.
Pair Corralation between Gold Bond and YD More
Assuming the 90 days trading horizon Gold Bond is expected to generate 1.91 times less return on investment than YD More. But when comparing it to its historical volatility, The Gold Bond is 1.54 times less risky than YD More. It trades about 0.07 of its potential returns per unit of risk. YD More Investments is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 76,466 in YD More Investments on November 9, 2024 and sell it today you would earn a total of 74,934 from holding YD More Investments or generate 98.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gold Bond vs. YD More Investments
Performance |
| Timeline |
| Gold Bond |
| YD More Investments |
Gold Bond and YD More Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bond and YD More
The main advantage of trading using opposite Gold Bond and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bond position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More'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 |
| YD More vs. Bank Leumi Le Israel | YD More vs. Mizrahi Tefahot | YD More vs. Israel Discount Bank | YD More vs. Bank Hapoalim |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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