Correlation Between Multi Retail and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Gamatronic Electronic 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 Multi Retail and Gamatronic Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Retail Group and Gamatronic Electronic Industries, you can compare the effects of market volatilities on Multi Retail and Gamatronic Electronic 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 Multi Retail with a short position of Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Gamatronic Electronic.
Diversification Opportunities for Multi Retail and Gamatronic Electronic
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multi and Gamatronic is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic and Multi Retail 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 Multi Retail Group are associated (or correlated) with Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Multi Retail i.e., Multi Retail and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between Multi Retail and Gamatronic Electronic
Assuming the 90 days trading horizon Multi Retail is expected to generate 1.11 times less return on investment than Gamatronic Electronic. In addition to that, Multi Retail is 1.44 times more volatile than Gamatronic Electronic Industries. It trades about 0.02 of its total potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about 0.04 per unit of volatility. If you would invest 95,000 in Gamatronic Electronic Industries on August 31, 2024 and sell it today you would earn a total of 1,000.00 from holding Gamatronic Electronic Industries or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Gamatronic Electronic Industri
Performance |
| Timeline |
| Multi Retail Group |
| Gamatronic Electronic |
Multi Retail and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Gamatronic Electronic
The main advantage of trading using opposite Multi Retail and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic's long position.| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Israel Land Development |
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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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