Correlation Between Kamada and Gold Bond
Can any of the company-specific risk be diversified away by investing in both Kamada and Gold Bond 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 Gold Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and The Gold Bond, you can compare the effects of market volatilities on Kamada and Gold Bond 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 Gold Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Gold Bond.
Diversification Opportunities for Kamada and Gold Bond
Very poor diversification
The 3 months correlation between Kamada and Gold is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and The Gold Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bond 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 Gold Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bond has no effect on the direction of Kamada i.e., Kamada and Gold Bond go up and down completely randomly.
Pair Corralation between Kamada and Gold Bond
Assuming the 90 days trading horizon Kamada is expected to generate 1.79 times less return on investment than Gold Bond. In addition to that, Kamada is 1.12 times more volatile than The Gold Bond. It trades about 0.12 of its total potential returns per unit of risk. The Gold Bond is currently generating about 0.24 per unit of volatility. If you would invest 1,284,332 in The Gold Bond on November 2, 2024 and sell it today you would earn a total of 506,668 from holding The Gold Bond or generate 39.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.77% |
| Values | Daily Returns |
Kamada vs. The Gold Bond
Performance |
| Timeline |
| Kamada |
| Gold Bond |
Kamada and Gold Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Gold Bond
The main advantage of trading using opposite Kamada and Gold Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Gold Bond 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 Gold Bond will offset losses from the drop in Gold Bond's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Gold Bond vs. Big Shopping Centers | Gold Bond vs. Al Bad Massuot Yitzhak | Gold Bond vs. Harel Insurance Investments | Gold Bond vs. Palram |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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