Correlation Between Rapac Communication and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Rapac Communication 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 Rapac Communication and Global Knafaim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rapac Communication Infrastructure and Global Knafaim Leasing, you can compare the effects of market volatilities on Rapac Communication 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 Rapac Communication with a short position of Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapac Communication and Global Knafaim.
Diversification Opportunities for Rapac Communication and Global Knafaim
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rapac and Global is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Rapac Communication Infrastruc 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 Rapac Communication 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 Rapac Communication Infrastructure 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 Rapac Communication i.e., Rapac Communication and Global Knafaim go up and down completely randomly.
Pair Corralation between Rapac Communication and Global Knafaim
Assuming the 90 days trading horizon Rapac Communication Infrastructure is expected to generate 0.95 times more return on investment than Global Knafaim. However, Rapac Communication Infrastructure is 1.06 times less risky than Global Knafaim. It trades about 0.34 of its potential returns per unit of risk. Global Knafaim Leasing is currently generating about -0.16 per unit of risk. If you would invest 339,900 in Rapac Communication Infrastructure on November 27, 2024 and sell it today you would earn a total of 38,100 from holding Rapac Communication Infrastructure or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rapac Communication Infrastruc vs. Global Knafaim Leasing
Performance |
| Timeline |
| Rapac Communication |
| Global Knafaim Leasing |
Rapac Communication and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapac Communication and Global Knafaim
The main advantage of trading using opposite Rapac Communication and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapac Communication 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.| Rapac Communication vs. EN Shoham Business | Rapac Communication vs. Accel Solutions Group | Rapac Communication vs. Mivtach Shamir | Rapac Communication vs. Rani Zim Shopping |
| Global Knafaim vs. Knafaim | Global Knafaim vs. El Al Israel | Global Knafaim vs. Orbit Technologies | Global Knafaim vs. Ashot Ashkelon Industries |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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