Correlation Between Intercure and Kamada
Can any of the company-specific risk be diversified away by investing in both Intercure and Kamada 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 Intercure and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Kamada, you can compare the effects of market volatilities on Intercure and Kamada 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 Intercure with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Kamada.
Diversification Opportunities for Intercure and Kamada
Excellent diversification
The 3 months correlation between Intercure and Kamada is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Intercure 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 Intercure are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Intercure i.e., Intercure and Kamada go up and down completely randomly.
Pair Corralation between Intercure and Kamada
Assuming the 90 days trading horizon Intercure is expected to generate 2.28 times more return on investment than Kamada. However, Intercure is 2.28 times more volatile than Kamada. It trades about -0.02 of its potential returns per unit of risk. Kamada is currently generating about -0.17 per unit of risk. If you would invest 50,740 in Intercure on September 13, 2024 and sell it today you would lose (1,440) from holding Intercure or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Kamada
Performance |
| Timeline |
| Intercure |
| Kamada |
Intercure and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Kamada
The main advantage of trading using opposite Intercure and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Intercure vs. Kamada | Intercure vs. Bezeq Israeli Telecommunication | Intercure vs. B Communications | Intercure vs. Photomyne |
| Kamada vs. Bezeq Israeli Telecommunication | Kamada vs. B Communications | Kamada vs. Photomyne | Kamada vs. M Yochananof and |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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