Correlation Between YD More and GFC Green
Can any of the company-specific risk be diversified away by investing in both YD More and GFC Green 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 YD More and GFC Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YD More Investments and GFC Green Fields, you can compare the effects of market volatilities on YD More and GFC Green 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 YD More with a short position of GFC Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of YD More and GFC Green.
Diversification Opportunities for YD More and GFC Green
Pay attention - limited upside
The 3 months correlation between MRIN and GFC is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding YD More Investments and GFC Green Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFC Green Fields and YD More 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 YD More Investments are associated (or correlated) with GFC Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFC Green Fields has no effect on the direction of YD More i.e., YD More and GFC Green go up and down completely randomly.
Pair Corralation between YD More and GFC Green
If you would invest 117,796 in YD More Investments on September 13, 2024 and sell it today you would earn a total of 22,904 from holding YD More Investments or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
YD More Investments vs. GFC Green Fields
Performance |
| Timeline |
| YD More Investments |
| GFC Green Fields |
YD More and GFC Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YD More and GFC Green
The main advantage of trading using opposite YD More and GFC Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YD More position performs unexpectedly, GFC Green 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 GFC Green will offset losses from the drop in GFC Green's long position.| YD More vs. Bank Hapoalim | YD More vs. Israel Discount Bank | YD More vs. Mizrahi Tefahot | YD More vs. Bezeq Israeli Telecommunication |
| GFC Green vs. Silver Castle Holdings | GFC Green vs. Computer Direct | GFC Green vs. Meitav Trade Inv | GFC Green vs. Multi Retail 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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