Correlation Between Gilat Satellite and Delta Galil
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Delta Galil 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 Gilat Satellite and Delta Galil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Delta Galil Industries, you can compare the effects of market volatilities on Gilat Satellite and Delta Galil 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 Gilat Satellite with a short position of Delta Galil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Delta Galil.
Diversification Opportunities for Gilat Satellite and Delta Galil
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gilat and Delta is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Delta Galil Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Galil Industries and Gilat Satellite 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 Gilat Satellite Networks are associated (or correlated) with Delta Galil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Galil Industries has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Delta Galil go up and down completely randomly.
Pair Corralation between Gilat Satellite and Delta Galil
Assuming the 90 days trading horizon Gilat Satellite is expected to generate 86.45 times less return on investment than Delta Galil. In addition to that, Gilat Satellite is 1.33 times more volatile than Delta Galil Industries. It trades about 0.0 of its total potential returns per unit of risk. Delta Galil Industries is currently generating about 0.04 per unit of volatility. If you would invest 1,630,000 in Delta Galil Industries on January 24, 2024 and sell it today you would earn a total of 20,000 from holding Delta Galil Industries or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Delta Galil Industries
Performance |
| Timeline |
| Gilat Satellite Networks |
| Delta Galil Industries |
Gilat Satellite and Delta Galil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Delta Galil
The main advantage of trading using opposite Gilat Satellite and Delta Galil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Delta Galil 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 Delta Galil will offset losses from the drop in Delta Galil's long position.The idea behind Gilat Satellite Networks and Delta Galil Industries pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Delta Galil vs. Clal Insurance Enterprises | Delta Galil vs. Israel Discount Bank | Delta Galil vs. Bezeq Israeli Telecommunication | Delta Galil vs. Alony Hetz Properties |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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