Correlation Between Kamada and Israel Land
Can any of the company-specific risk be diversified away by investing in both Kamada and Israel Land 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 Israel Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Israel Land Development, you can compare the effects of market volatilities on Kamada and Israel Land 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 Israel Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Israel Land.
Diversification Opportunities for Kamada and Israel Land
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kamada and Israel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Israel Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Land Development 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 Israel Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Land Development has no effect on the direction of Kamada i.e., Kamada and Israel Land go up and down completely randomly.
Pair Corralation between Kamada and Israel Land
Assuming the 90 days trading horizon Kamada is expected to generate 4.85 times more return on investment than Israel Land. However, Kamada is 4.85 times more volatile than Israel Land Development. It trades about 0.02 of its potential returns per unit of risk. Israel Land Development is currently generating about -0.35 per unit of risk. If you would invest 251,100 in Kamada on November 28, 2024 and sell it today you would lose (2,100) from holding Kamada or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Israel Land Development
Performance |
| Timeline |
| Kamada |
| Israel Land Development |
Kamada and Israel Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Israel Land
The main advantage of trading using opposite Kamada and Israel Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Israel Land 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 Israel Land will offset losses from the drop in Israel Land's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Israel Land vs. Israel Land Development | Israel Land vs. Lapidoth | Israel Land vs. Ilex Medical | Israel Land vs. Aerodrome Group |
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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