Correlation Between Gazit Globe and Nextgen
Can any of the company-specific risk be diversified away by investing in both Gazit Globe and Nextgen 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 Gazit Globe and Nextgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gazit Globe and Nextgen, you can compare the effects of market volatilities on Gazit Globe and Nextgen 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 Gazit Globe with a short position of Nextgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gazit Globe and Nextgen.
Diversification Opportunities for Gazit Globe and Nextgen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gazit and Nextgen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gazit Globe and Nextgen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen and Gazit Globe 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 Gazit Globe are associated (or correlated) with Nextgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen has no effect on the direction of Gazit Globe i.e., Gazit Globe and Nextgen go up and down completely randomly.
Pair Corralation between Gazit Globe and Nextgen
Assuming the 90 days trading horizon Gazit Globe is expected to generate 0.33 times more return on investment than Nextgen. However, Gazit Globe is 3.06 times less risky than Nextgen. It trades about -0.05 of its potential returns per unit of risk. Nextgen is currently generating about -0.12 per unit of risk. If you would invest 133,500 in Gazit Globe on November 28, 2024 and sell it today you would lose (3,000) from holding Gazit Globe or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gazit Globe vs. Nextgen
Performance |
| Timeline |
| Gazit Globe |
| Nextgen |
Gazit Globe and Nextgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gazit Globe and Nextgen
The main advantage of trading using opposite Gazit Globe and Nextgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gazit Globe position performs unexpectedly, Nextgen 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 Nextgen will offset losses from the drop in Nextgen's long position.| Gazit Globe vs. Meitav Trade Inv | Gazit Globe vs. Scope Metals Group | Gazit Globe vs. YH Dimri Construction | Gazit Globe vs. Clal Biotechnology Industries |
| Nextgen vs. Clal Biotechnology Industries | Nextgen vs. Spuntech | Nextgen vs. Orbit Technologies | Nextgen vs. Rimon Consulting Management |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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