Correlation Between Kamada and Enlight Renewable
Can any of the company-specific risk be diversified away by investing in both Kamada and Enlight Renewable 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 Kamada and Enlight Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Enlight Renewable Energy, you can compare the effects of market volatilities on Kamada and Enlight Renewable 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 Kamada with a short position of Enlight Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Enlight Renewable.
Diversification Opportunities for Kamada and Enlight Renewable
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kamada and Enlight is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable Energy and Kamada 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 Kamada are associated (or correlated) with Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of Kamada i.e., Kamada and Enlight Renewable go up and down completely randomly.
Pair Corralation between Kamada and Enlight Renewable
Assuming the 90 days trading horizon Kamada is expected to generate 0.96 times more return on investment than Enlight Renewable. However, Kamada is 1.04 times less risky than Enlight Renewable. It trades about 0.06 of its potential returns per unit of risk. Enlight Renewable Energy is currently generating about 0.04 per unit of risk. If you would invest 206,200 in Kamada on August 31, 2024 and sell it today you would earn a total of 4,400 from holding Kamada or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Kamada vs. Enlight Renewable Energy
Performance |
| Timeline |
| Kamada |
| Enlight Renewable Energy |
Kamada and Enlight Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Enlight Renewable
The main advantage of trading using opposite Kamada and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Enlight Renewable vs. Energix Renewable Energies | Enlight Renewable vs. Doral Group Renewable | Enlight Renewable vs. Elbit Systems | Enlight Renewable vs. Electreon Wireless |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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