Correlation Between Mobile Max and Kamada
Can any of the company-specific risk be diversified away by investing in both Mobile Max and Kamada 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 Mobile Max and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Max M and Kamada, you can compare the effects of market volatilities on Mobile Max and Kamada 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 Mobile Max with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Kamada.
Diversification Opportunities for Mobile Max and Kamada
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mobile and Kamada is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Mobile Max 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 Mobile Max M are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Mobile Max i.e., Mobile Max and Kamada go up and down completely randomly.
Pair Corralation between Mobile Max and Kamada
Assuming the 90 days trading horizon Mobile Max M is expected to under-perform the Kamada. But the stock apears to be less risky and, when comparing its historical volatility, Mobile Max M is 2.23 times less risky than Kamada. The stock trades about -0.21 of its potential returns per unit of risk. The Kamada is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Max M vs. Kamada
Performance |
| Timeline |
| Mobile Max M |
| Kamada |
Mobile Max and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Max and Kamada
The main advantage of trading using opposite Mobile Max and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Max position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Mobile Max vs. MEITAV INVESTMENTS HOUSE | Mobile Max vs. Arad Investment Industrial | Mobile Max vs. Sofwave Medical | Mobile Max vs. Libra Insurance |
| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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