Correlation Between Levinstein Eng and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both Levinstein Eng and Gilat Satellite 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 Levinstein Eng and Gilat Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinstein Eng and Gilat Satellite Networks, you can compare the effects of market volatilities on Levinstein Eng and Gilat Satellite 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 Levinstein Eng with a short position of Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinstein Eng and Gilat Satellite.
Diversification Opportunities for Levinstein Eng and Gilat Satellite
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Levinstein and Gilat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Levinstein Eng and Gilat Satellite Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Satellite Networks and Levinstein Eng 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 Levinstein Eng are associated (or correlated) with Gilat Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Satellite Networks has no effect on the direction of Levinstein Eng i.e., Levinstein Eng and Gilat Satellite go up and down completely randomly.
Pair Corralation between Levinstein Eng and Gilat Satellite
Assuming the 90 days trading horizon Levinstein Eng is expected to generate 1.59 times less return on investment than Gilat Satellite. In addition to that, Levinstein Eng is 1.39 times more volatile than Gilat Satellite Networks. It trades about 0.15 of its total potential returns per unit of risk. Gilat Satellite Networks is currently generating about 0.32 per unit of volatility. If you would invest 213,300 in Gilat Satellite Networks on October 21, 2024 and sell it today you would earn a total of 25,700 from holding Gilat Satellite Networks or generate 12.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levinstein Eng vs. Gilat Satellite Networks
Performance |
| Timeline |
| Levinstein Eng |
| Gilat Satellite Networks |
Levinstein Eng and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinstein Eng and Gilat Satellite
The main advantage of trading using opposite Levinstein Eng and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinstein Eng position performs unexpectedly, Gilat Satellite 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 Gilat Satellite will offset losses from the drop in Gilat Satellite's long position.| Levinstein Eng vs. Overseas Commerce | Levinstein Eng vs. The Gold Bond | Levinstein Eng vs. Bio Meat Foodtech | Levinstein Eng vs. Infimer |
| Gilat Satellite vs. Elbit Systems | Gilat Satellite vs. Tower Semiconductor | Gilat Satellite vs. Kamada | Gilat Satellite vs. Delek 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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