Correlation Between Retailors and Gencell
Can any of the company-specific risk be diversified away by investing in both Retailors 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 Retailors and Gencell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retailors and Gencell, you can compare the effects of market volatilities on Retailors 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 Retailors with a short position of Gencell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retailors and Gencell.
Diversification Opportunities for Retailors and Gencell
Very good diversification
The 3 months correlation between Retailors and Gencell is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Retailors and Gencell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencell and Retailors 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 Retailors 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 Retailors i.e., Retailors and Gencell go up and down completely randomly.
Pair Corralation between Retailors and Gencell
Assuming the 90 days trading horizon Retailors is expected to generate 0.84 times more return on investment than Gencell. However, Retailors is 1.19 times less risky than Gencell. It trades about 0.31 of its potential returns per unit of risk. Gencell is currently generating about 0.07 per unit of risk. If you would invest 647,200 in Retailors on September 13, 2024 and sell it today you would earn a total of 130,300 from holding Retailors or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retailors vs. Gencell
Performance |
| Timeline |
| Retailors |
| Gencell |
Retailors and Gencell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retailors and Gencell
The main advantage of trading using opposite Retailors and Gencell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retailors 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.| Retailors vs. Nice | Retailors vs. The Gold Bond | Retailors vs. Bank Leumi Le Israel | Retailors vs. ICL Israel Chemicals |
| Gencell vs. Discount Investment Corp | Gencell vs. Harel Insurance Investments | Gencell vs. Amot Investments | Gencell vs. Storage Drop Storage |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |