Correlation Between Oron Group and Gilat Telecom
Can any of the company-specific risk be diversified away by investing in both Oron Group and Gilat Telecom 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 Oron Group and Gilat Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oron Group Investments and Gilat Telecom Global, you can compare the effects of market volatilities on Oron Group and Gilat Telecom 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 Oron Group with a short position of Gilat Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oron Group and Gilat Telecom.
Diversification Opportunities for Oron Group and Gilat Telecom
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oron and Gilat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Oron Group Investments and Gilat Telecom Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Telecom Global and Oron Group 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 Oron Group Investments are associated (or correlated) with Gilat Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Telecom Global has no effect on the direction of Oron Group i.e., Oron Group and Gilat Telecom go up and down completely randomly.
Pair Corralation between Oron Group and Gilat Telecom
Assuming the 90 days trading horizon Oron Group Investments is expected to generate 1.04 times more return on investment than Gilat Telecom. However, Oron Group is 1.04 times more volatile than Gilat Telecom Global. It trades about 0.01 of its potential returns per unit of risk. Gilat Telecom Global is currently generating about -0.03 per unit of risk. If you would invest 93,290 in Oron Group Investments on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Oron Group Investments or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oron Group Investments vs. Gilat Telecom Global
Performance |
| Timeline |
| Oron Group Investments |
| Gilat Telecom Global |
Oron Group and Gilat Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oron Group and Gilat Telecom
The main advantage of trading using opposite Oron Group and Gilat Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oron Group position performs unexpectedly, Gilat Telecom 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 Gilat Telecom will offset losses from the drop in Gilat Telecom's long position.| Oron Group vs. Arad | Oron Group vs. Alony Hetz Properties | Oron Group vs. Danel | Oron Group vs. Airport City |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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