Correlation Between Kamada and Tikun Olam
Can any of the company-specific risk be diversified away by investing in both Kamada and Tikun Olam 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 Tikun Olam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Tikun Olam Cannbit, you can compare the effects of market volatilities on Kamada and Tikun Olam 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 Tikun Olam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Tikun Olam.
Diversification Opportunities for Kamada and Tikun Olam
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kamada and Tikun is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Tikun Olam Cannbit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikun Olam Cannbit 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 Tikun Olam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikun Olam Cannbit has no effect on the direction of Kamada i.e., Kamada and Tikun Olam go up and down completely randomly.
Pair Corralation between Kamada and Tikun Olam
Assuming the 90 days trading horizon Kamada is expected to generate 0.4 times more return on investment than Tikun Olam. However, Kamada is 2.51 times less risky than Tikun Olam. It trades about 0.22 of its potential returns per unit of risk. Tikun Olam Cannbit is currently generating about 0.02 per unit of risk. If you would invest 204,000 in Kamada on October 24, 2024 and sell it today you would earn a total of 48,300 from holding Kamada or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Tikun Olam Cannbit
Performance |
| Timeline |
| Kamada |
| Tikun Olam Cannbit |
Kamada and Tikun Olam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Tikun Olam
The main advantage of trading using opposite Kamada and Tikun Olam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Tikun Olam 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 Tikun Olam will offset losses from the drop in Tikun Olam's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Tikun Olam vs. Kamada | Tikun Olam vs. Rekah Pharmaceutical Industry | Tikun Olam vs. Nextage Therapeutics | Tikun Olam vs. Nextage Therapeutics |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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