Correlation Between Teuza A and Satcom Systems
Can any of the company-specific risk be diversified away by investing in both Teuza A and Satcom Systems 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 Teuza A and Satcom Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teuza A Fairchild and Satcom Systems, you can compare the effects of market volatilities on Teuza A and Satcom Systems 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 Teuza A with a short position of Satcom Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teuza A and Satcom Systems.
Diversification Opportunities for Teuza A and Satcom Systems
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teuza and Satcom is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Teuza A Fairchild and Satcom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satcom Systems and Teuza A 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 Teuza A Fairchild are associated (or correlated) with Satcom Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satcom Systems has no effect on the direction of Teuza A i.e., Teuza A and Satcom Systems go up and down completely randomly.
Pair Corralation between Teuza A and Satcom Systems
Assuming the 90 days trading horizon Teuza A is expected to generate 1.15 times less return on investment than Satcom Systems. In addition to that, Teuza A is 1.27 times more volatile than Satcom Systems. It trades about 0.07 of its total potential returns per unit of risk. Satcom Systems is currently generating about 0.1 per unit of volatility. If you would invest 5,640 in Satcom Systems on December 4, 2024 and sell it today you would earn a total of 1,430 from holding Satcom Systems or generate 25.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teuza A Fairchild vs. Satcom Systems
Performance |
| Timeline |
| Teuza A Fairchild |
| Satcom Systems |
Teuza A and Satcom Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teuza A and Satcom Systems
The main advantage of trading using opposite Teuza A and Satcom Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teuza A position performs unexpectedly, Satcom Systems 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 Satcom Systems will offset losses from the drop in Satcom Systems' long position.| Teuza A vs. Mivtach Shamir | Teuza A vs. Migdal Insurance | Teuza A vs. Clal Insurance Enterprises | Teuza A vs. Analyst IMS Investment |
| Satcom Systems vs. Safe T Group | Satcom Systems vs. WhiteSmoke Software | Satcom Systems vs. Foresight Autonomous Holdings | Satcom Systems vs. Internet Gold Golden |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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