Correlation Between SatixFy Communications and Global Crossing
Can any of the company-specific risk be diversified away by investing in both SatixFy Communications and Global Crossing 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 SatixFy Communications and Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SatixFy Communications and Global Crossing Airlines, you can compare the effects of market volatilities on SatixFy Communications and Global Crossing 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 SatixFy Communications with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SatixFy Communications and Global Crossing.
Diversification Opportunities for SatixFy Communications and Global Crossing
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SatixFy and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SatixFy Communications and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and SatixFy Communications 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 SatixFy Communications are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of SatixFy Communications i.e., SatixFy Communications and Global Crossing go up and down completely randomly.
Pair Corralation between SatixFy Communications and Global Crossing
Given the investment horizon of 90 days SatixFy Communications is expected to generate 1.57 times more return on investment than Global Crossing. However, SatixFy Communications is 1.57 times more volatile than Global Crossing Airlines. It trades about 0.03 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.01 per unit of risk. If you would invest 153.00 in SatixFy Communications on November 2, 2024 and sell it today you would lose (27.00) from holding SatixFy Communications or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SatixFy Communications vs. Global Crossing Airlines
Performance |
| Timeline |
| SatixFy Communications |
| Global Crossing Airlines |
SatixFy Communications and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SatixFy Communications and Global Crossing
The main advantage of trading using opposite SatixFy Communications and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SatixFy Communications position performs unexpectedly, Global Crossing 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 Crossing will offset losses from the drop in Global Crossing's long position.| SatixFy Communications vs. Actelis Networks | SatixFy Communications vs. ClearOne | SatixFy Communications vs. Siyata Mobile | SatixFy Communications vs. Mobilicom Limited Warrants |
| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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