Correlation Between Sarine Technologies and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Sarine 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 Sarine 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 Sarine Technologies and Global Knafaim Leasing, you can compare the effects of market volatilities on Sarine 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 Sarine Technologies with a short position of Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarine Technologies and Global Knafaim.
Diversification Opportunities for Sarine Technologies and Global Knafaim
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sarine and Global is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sarine 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 Sarine 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 Sarine 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 Sarine Technologies i.e., Sarine Technologies and Global Knafaim go up and down completely randomly.
Pair Corralation between Sarine Technologies and Global Knafaim
Assuming the 90 days trading horizon Sarine Technologies is expected to under-perform the Global Knafaim. In addition to that, Sarine Technologies is 26.51 times more volatile than Global Knafaim Leasing. It trades about -0.02 of its total potential returns per unit of risk. Global Knafaim Leasing is currently generating about -0.22 per unit of volatility. If you would invest 7,680 in Global Knafaim Leasing on January 18, 2025 and sell it today you would lose (40.00) from holding Global Knafaim Leasing or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarine Technologies vs. Global Knafaim Leasing
Performance |
| Timeline |
| Sarine Technologies |
| Global Knafaim Leasing |
Sarine Technologies and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarine Technologies and Global Knafaim
The main advantage of trading using opposite Sarine Technologies and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarine 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.| Sarine Technologies vs. Clal Insurance Enterprises | Sarine Technologies vs. Batm Advanced Communications | Sarine Technologies vs. Rapac Communication Infrastructure | Sarine Technologies vs. Gix Internet |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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