Correlation Between Rimon Consulting and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Rimon Consulting 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 Rimon Consulting and Global Knafaim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimon Consulting Management and Global Knafaim Leasing, you can compare the effects of market volatilities on Rimon Consulting 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 Rimon Consulting with a short position of Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimon Consulting and Global Knafaim.
Diversification Opportunities for Rimon Consulting and Global Knafaim
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rimon and Global is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rimon Consulting Management 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 Rimon Consulting 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 Rimon Consulting Management 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 Rimon Consulting i.e., Rimon Consulting and Global Knafaim go up and down completely randomly.
Pair Corralation between Rimon Consulting and Global Knafaim
Assuming the 90 days trading horizon Rimon Consulting Management is expected to generate 1.42 times more return on investment than Global Knafaim. However, Rimon Consulting is 1.42 times more volatile than Global Knafaim Leasing. It trades about 0.41 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 371,600 in Rimon Consulting Management on August 28, 2024 and sell it today you would earn a total of 78,000 from holding Rimon Consulting Management or generate 20.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rimon Consulting Management vs. Global Knafaim Leasing
Performance |
| Timeline |
| Rimon Consulting Man |
| Global Knafaim Leasing |
Rimon Consulting and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimon Consulting and Global Knafaim
The main advantage of trading using opposite Rimon Consulting and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimon Consulting 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.| Rimon Consulting vs. Shapir Engineering Industry | Rimon Consulting vs. Electra | Rimon Consulting vs. Shikun Binui | Rimon Consulting vs. Levinstein Eng |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |