Correlation Between Gilat Satellite and Klil Industries
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite and Klil Industries 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 Klil Industries 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 Klil Industries, you can compare the effects of market volatilities on Gilat Satellite and Klil Industries 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 Klil Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Klil Industries.
Diversification Opportunities for Gilat Satellite and Klil Industries
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gilat and Klil is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Klil Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klil 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 Klil Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klil Industries has no effect on the direction of Gilat Satellite i.e., Gilat Satellite and Klil Industries go up and down completely randomly.
Pair Corralation between Gilat Satellite and Klil Industries
Assuming the 90 days trading horizon Gilat Satellite Networks is expected to generate 1.03 times more return on investment than Klil Industries. However, Gilat Satellite is 1.03 times more volatile than Klil Industries. It trades about -0.01 of its potential returns per unit of risk. Klil Industries is currently generating about -0.03 per unit of risk. If you would invest 247,000 in Gilat Satellite Networks on January 20, 2024 and sell it today you would lose (47,900) from holding Gilat Satellite Networks or give up 19.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Klil Industries
Performance |
| Timeline |
| Gilat Satellite Networks |
| Klil Industries |
Gilat Satellite and Klil Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Klil Industries
The main advantage of trading using opposite Gilat Satellite and Klil Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite position performs unexpectedly, Klil Industries 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 Klil Industries will offset losses from the drop in Klil Industries' long position.| Gilat Satellite vs. Automatic Bank Services | Gilat Satellite vs. EN Shoham Business | Gilat Satellite vs. Rapac Communication Infrastructure | Gilat Satellite vs. Tadiran Hldg |
| Klil Industries vs. EN Shoham Business | Klil Industries vs. Accel Solutions Group | Klil Industries vs. Mivtach Shamir | Klil Industries vs. Rani Zim Shopping |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |