Correlation Between Ginegar and El Al
Can any of the company-specific risk be diversified away by investing in both Ginegar and El Al 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 Ginegar and El Al into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ginegar and El Al Israel, you can compare the effects of market volatilities on Ginegar and El Al 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 Ginegar with a short position of El Al. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginegar and El Al.
Diversification Opportunities for Ginegar and El Al
Poor diversification
The 3 months correlation between Ginegar and ELAL is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ginegar and El Al Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Al Israel and Ginegar 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 Ginegar are associated (or correlated) with El Al. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Al Israel has no effect on the direction of Ginegar i.e., Ginegar and El Al go up and down completely randomly.
Pair Corralation between Ginegar and El Al
Assuming the 90 days trading horizon Ginegar is expected to generate 1.24 times less return on investment than El Al. But when comparing it to its historical volatility, Ginegar is 1.27 times less risky than El Al. It trades about 0.08 of its potential returns per unit of risk. El Al Israel is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 29,161 in El Al Israel on January 24, 2024 and sell it today you would earn a total of 18,509 from holding El Al Israel or generate 63.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginegar vs. El Al Israel
Performance |
| Timeline |
| Ginegar |
| El Al Israel |
Ginegar and El Al Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginegar and El Al
The main advantage of trading using opposite Ginegar and El Al positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginegar position performs unexpectedly, El Al 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 El Al will offset losses from the drop in El Al's long position.| Ginegar vs. Neto ME Holdings | Ginegar vs. Aryt Industries | Ginegar vs. Kerur Holdings | Ginegar vs. Globrands Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |