Correlation Between Gan Shmuel and M Yochananof
Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and M Yochananof 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 M Yochananof into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan Shmuel and M Yochananof and, you can compare the effects of market volatilities on Gan Shmuel and M Yochananof 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 M Yochananof. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and M Yochananof.
Diversification Opportunities for Gan Shmuel and M Yochananof
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gan and YHNF is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and M Yochananof and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Yochananof 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 M Yochananof. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Yochananof has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and M Yochananof go up and down completely randomly.
Pair Corralation between Gan Shmuel and M Yochananof
Assuming the 90 days trading horizon Gan Shmuel is expected to under-perform the M Yochananof. In addition to that, Gan Shmuel is 1.62 times more volatile than M Yochananof and. It trades about -0.38 of its total potential returns per unit of risk. M Yochananof and is currently generating about -0.02 per unit of volatility. If you would invest 2,484,000 in M Yochananof and on November 27, 2024 and sell it today you would lose (20,000) from holding M Yochananof and or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Shmuel vs. M Yochananof and
Performance |
| Timeline |
| Gan Shmuel |
| M Yochananof |
Gan Shmuel and M Yochananof Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Shmuel and M Yochananof
The main advantage of trading using opposite Gan Shmuel and M Yochananof positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Shmuel position performs unexpectedly, M Yochananof 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 M Yochananof will offset losses from the drop in M Yochananof'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 |
| M Yochananof vs. Rami Levi | M Yochananof vs. Shufersal | M Yochananof vs. Strauss Group | M Yochananof vs. Victory Supermarket Chain |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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