Correlation Between Suny Cellular and Golan Plastic
Can any of the company-specific risk be diversified away by investing in both Suny Cellular and Golan Plastic 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 Suny Cellular and Golan Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suny Cellular Communication and Golan Plastic, you can compare the effects of market volatilities on Suny Cellular and Golan Plastic 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 Suny Cellular with a short position of Golan Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suny Cellular and Golan Plastic.
Diversification Opportunities for Suny Cellular and Golan Plastic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suny and Golan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Suny Cellular Communication and Golan Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golan Plastic and Suny Cellular 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 Suny Cellular Communication are associated (or correlated) with Golan Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golan Plastic has no effect on the direction of Suny Cellular i.e., Suny Cellular and Golan Plastic go up and down completely randomly.
Pair Corralation between Suny Cellular and Golan Plastic
Assuming the 90 days trading horizon Suny Cellular is expected to generate 2.0 times less return on investment than Golan Plastic. But when comparing it to its historical volatility, Suny Cellular Communication is 1.59 times less risky than Golan Plastic. It trades about 0.02 of its potential returns per unit of risk. Golan Plastic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 96,653 in Golan Plastic on August 25, 2024 and sell it today you would earn a total of 14,847 from holding Golan Plastic or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suny Cellular Communication vs. Golan Plastic
Performance |
| Timeline |
| Suny Cellular Commun |
| Golan Plastic |
Suny Cellular and Golan Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suny Cellular and Golan Plastic
The main advantage of trading using opposite Suny Cellular and Golan Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suny Cellular position performs unexpectedly, Golan Plastic 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 Golan Plastic will offset losses from the drop in Golan Plastic's long position.| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
| Golan Plastic vs. Arad | Golan Plastic vs. Alony Hetz Properties | Golan Plastic vs. Danel | Golan Plastic 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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