Correlation Between Gan Shmuel and Israel China
Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and Israel China 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 Gan Shmuel and Israel China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan Shmuel and Israel China Biotechnology, you can compare the effects of market volatilities on Gan Shmuel and Israel China 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 Gan Shmuel with a short position of Israel China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and Israel China.
Diversification Opportunities for Gan Shmuel and Israel China
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gan and Israel is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and Israel China Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel China Biotech and Gan Shmuel 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 Gan Shmuel are associated (or correlated) with Israel China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel China Biotech has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and Israel China go up and down completely randomly.
Pair Corralation between Gan Shmuel and Israel China
Assuming the 90 days trading horizon Gan Shmuel is expected to generate 0.45 times more return on investment than Israel China. However, Gan Shmuel is 2.22 times less risky than Israel China. It trades about 0.18 of its potential returns per unit of risk. Israel China Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 338,000 in Gan Shmuel on September 4, 2024 and sell it today you would earn a total of 51,900 from holding Gan Shmuel or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Shmuel vs. Israel China Biotechnology
Performance |
| Timeline |
| Gan Shmuel |
| Israel China Biotech |
Gan Shmuel and Israel China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Shmuel and Israel China
The main advantage of trading using opposite Gan Shmuel and Israel China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Shmuel position performs unexpectedly, Israel China 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 Israel China will offset losses from the drop in Israel China's long position.| Gan Shmuel vs. Neto ME Holdings | Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Salomon A Angel | Gan Shmuel vs. Sano Brunos Enterprises |
| Israel China vs. MEITAV INVESTMENTS HOUSE | Israel China vs. El Al Israel | Israel China vs. Gan Shmuel | Israel China vs. Polyram Plastic 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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