Correlation Between Terminal X and Gazit Globe
Can any of the company-specific risk be diversified away by investing in both Terminal X and Gazit Globe 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 Terminal X and Gazit Globe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terminal X Online and Gazit Globe, you can compare the effects of market volatilities on Terminal X and Gazit Globe 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 Terminal X with a short position of Gazit Globe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terminal X and Gazit Globe.
Diversification Opportunities for Terminal X and Gazit Globe
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Terminal and Gazit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Terminal X Online and Gazit Globe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gazit Globe and Terminal X 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 Terminal X Online are associated (or correlated) with Gazit Globe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gazit Globe has no effect on the direction of Terminal X i.e., Terminal X and Gazit Globe go up and down completely randomly.
Pair Corralation between Terminal X and Gazit Globe
Assuming the 90 days trading horizon Terminal X Online is expected to under-perform the Gazit Globe. But the stock apears to be less risky and, when comparing its historical volatility, Terminal X Online is 1.29 times less risky than Gazit Globe. The stock trades about -0.02 of its potential returns per unit of risk. The Gazit Globe is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 142,900 in Gazit Globe on September 2, 2024 and sell it today you would earn a total of 13,400 from holding Gazit Globe or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terminal X Online vs. Gazit Globe
Performance |
| Timeline |
| Terminal X Online |
| Gazit Globe |
Terminal X and Gazit Globe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terminal X and Gazit Globe
The main advantage of trading using opposite Terminal X and Gazit Globe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terminal X position performs unexpectedly, Gazit Globe 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 Gazit Globe will offset losses from the drop in Gazit Globe's long position.| Terminal X vs. Retailors | Terminal X vs. Delek Group | Terminal X vs. Brainsway | Terminal X vs. Mivne Real Estate |
| Gazit Globe vs. Inrom Construction Industries | Gazit Globe vs. GODM Investments | Gazit Globe vs. YD More Investments | Gazit Globe vs. Amir Marketing and |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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