Correlation Between Orbit Technologies and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Global Knafaim 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 Orbit Technologies and Global Knafaim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Technologies and Global Knafaim Leasing, you can compare the effects of market volatilities on Orbit Technologies and Global Knafaim 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 Orbit Technologies with a short position of Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Global Knafaim.
Diversification Opportunities for Orbit Technologies and Global Knafaim
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orbit and Global is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Global Knafaim Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Knafaim Leasing and Orbit Technologies 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 Orbit Technologies are associated (or correlated) with Global Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Knafaim Leasing has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Global Knafaim go up and down completely randomly.
Pair Corralation between Orbit Technologies and Global Knafaim
Assuming the 90 days trading horizon Orbit Technologies is expected to generate 1.06 times more return on investment than Global Knafaim. However, Orbit Technologies is 1.06 times more volatile than Global Knafaim Leasing. It trades about 0.3 of its potential returns per unit of risk. Global Knafaim Leasing is currently generating about -0.17 per unit of risk. If you would invest 249,300 in Orbit Technologies on August 29, 2024 and sell it today you would earn a total of 26,800 from holding Orbit Technologies or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Technologies vs. Global Knafaim Leasing
Performance |
| Timeline |
| Orbit Technologies |
| Global Knafaim Leasing |
Orbit Technologies and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Technologies and Global Knafaim
The main advantage of trading using opposite Orbit Technologies and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Technologies position performs unexpectedly, Global Knafaim 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 Global Knafaim will offset losses from the drop in Global Knafaim's long position.| Orbit Technologies vs. Elbit Systems | Orbit Technologies vs. Bet Shemesh Engines | Orbit Technologies vs. Maytronics | Orbit Technologies vs. Bezeq Israeli Telecommunication |
| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Danel | Global Knafaim vs. Airport City |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |