Correlation Between Kamada and Space
Can any of the company-specific risk be diversified away by investing in both Kamada and Space 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 Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Space Com, you can compare the effects of market volatilities on Kamada and Space 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 Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Space.
Diversification Opportunities for Kamada and Space
Weak diversification
The 3 months correlation between Kamada and Space is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Space Com in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Com 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 Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Com has no effect on the direction of Kamada i.e., Kamada and Space go up and down completely randomly.
Pair Corralation between Kamada and Space
Assuming the 90 days trading horizon Kamada is expected to generate 0.32 times more return on investment than Space. However, Kamada is 3.08 times less risky than Space. It trades about 0.01 of its potential returns per unit of risk. Space Com is currently generating about -0.08 per unit of risk. If you would invest 212,100 in Kamada on September 2, 2024 and sell it today you would lose (1,500) from holding Kamada or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Space Com
Performance |
| Timeline |
| Kamada |
| Space Com |
Kamada and Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Space
The main advantage of trading using opposite Kamada and Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Space 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 Space will offset losses from the drop in Space's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Space vs. Bezeq Israeli Telecommunication | Space vs. Tower Semiconductor | Space vs. El Al Israel | Space vs. Kamada |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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