Correlation Between Netz Hotels and Gencell
Can any of the company-specific risk be diversified away by investing in both Netz Hotels and Gencell 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 Netz Hotels and Gencell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netz Hotels and Gencell, you can compare the effects of market volatilities on Netz Hotels and Gencell 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 Netz Hotels with a short position of Gencell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netz Hotels and Gencell.
Diversification Opportunities for Netz Hotels and Gencell
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Netz and Gencell is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Netz Hotels and Gencell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencell and Netz Hotels 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 Netz Hotels are associated (or correlated) with Gencell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencell has no effect on the direction of Netz Hotels i.e., Netz Hotels and Gencell go up and down completely randomly.
Pair Corralation between Netz Hotels and Gencell
Assuming the 90 days trading horizon Netz Hotels is expected to generate 1.15 times more return on investment than Gencell. However, Netz Hotels is 1.15 times more volatile than Gencell. It trades about 0.27 of its potential returns per unit of risk. Gencell is currently generating about 0.04 per unit of risk. If you would invest 2,730 in Netz Hotels on September 12, 2024 and sell it today you would earn a total of 1,870 from holding Netz Hotels or generate 68.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netz Hotels vs. Gencell
Performance |
| Timeline |
| Netz Hotels |
| Gencell |
Netz Hotels and Gencell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netz Hotels and Gencell
The main advantage of trading using opposite Netz Hotels and Gencell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netz Hotels position performs unexpectedly, Gencell 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 Gencell will offset losses from the drop in Gencell's long position.| Netz Hotels vs. Direct Capital Investments | Netz Hotels vs. Itay Financial AA | Netz Hotels vs. Opal Balance | Netz Hotels vs. B Communications |
| Gencell vs. Iargento Hi Tech | Gencell vs. Retailors | Gencell vs. Ilex Medical | Gencell vs. Harel Insurance Investments |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |