Correlation Between Netanel and Kardan Real
Can any of the company-specific risk be diversified away by investing in both Netanel and Kardan Real 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 Netanel and Kardan Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netanel Group and Kardan Real Estate, you can compare the effects of market volatilities on Netanel and Kardan Real 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 Netanel with a short position of Kardan Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netanel and Kardan Real.
Diversification Opportunities for Netanel and Kardan Real
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Netanel and Kardan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Netanel Group and Kardan Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardan Real Estate and Netanel 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 Netanel Group are associated (or correlated) with Kardan Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardan Real Estate has no effect on the direction of Netanel i.e., Netanel and Kardan Real go up and down completely randomly.
Pair Corralation between Netanel and Kardan Real
Assuming the 90 days trading horizon Netanel Group is expected to generate 0.75 times more return on investment than Kardan Real. However, Netanel Group is 1.34 times less risky than Kardan Real. It trades about 0.42 of its potential returns per unit of risk. Kardan Real Estate is currently generating about 0.3 per unit of risk. If you would invest 113,400 in Netanel Group on August 31, 2024 and sell it today you would earn a total of 14,000 from holding Netanel Group or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Netanel Group vs. Kardan Real Estate
Performance |
| Timeline |
| Netanel Group |
| Kardan Real Estate |
Netanel and Kardan Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netanel and Kardan Real
The main advantage of trading using opposite Netanel and Kardan Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netanel position performs unexpectedly, Kardan Real 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 Kardan Real will offset losses from the drop in Kardan Real's long position.| Netanel vs. El Al Israel | Netanel vs. Magic Software Enterprises | Netanel vs. Neto Malinda | Netanel vs. Orbit Technologies |
| Kardan Real vs. Netanel Group | Kardan Real vs. Ashtrom Group | Kardan Real vs. Palram | Kardan Real vs. Israel Canada |
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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