Correlation Between Gan Shmuel and Partner
Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and Partner 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 Gan Shmuel and Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan Shmuel and Partner, you can compare the effects of market volatilities on Gan Shmuel and Partner 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 Gan Shmuel with a short position of Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and Partner.
Diversification Opportunities for Gan Shmuel and Partner
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Partner is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and Partner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partner and Gan Shmuel 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 Gan Shmuel are associated (or correlated) with Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partner has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and Partner go up and down completely randomly.
Pair Corralation between Gan Shmuel and Partner
Assuming the 90 days trading horizon Gan Shmuel is expected to generate 3.32 times more return on investment than Partner. However, Gan Shmuel is 3.32 times more volatile than Partner. It trades about 0.39 of its potential returns per unit of risk. Partner is currently generating about 0.05 per unit of risk. If you would invest 162,781 in Gan Shmuel on January 19, 2024 and sell it today you would earn a total of 77,619 from holding Gan Shmuel or generate 47.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Shmuel vs. Partner
Performance |
| Timeline |
| Gan Shmuel |
| Partner |
Gan Shmuel and Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Shmuel and Partner
The main advantage of trading using opposite Gan Shmuel and Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Shmuel position performs unexpectedly, Partner 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 Partner will offset losses from the drop in Partner's long position.| Gan Shmuel vs. Delek Automotive Systems | Gan Shmuel vs. Globrands Group | Gan Shmuel vs. Ram On Investments and | Gan Shmuel vs. Scope Metals Group |
| Partner vs. EN Shoham Business | Partner vs. Accel Solutions Group | Partner vs. SR Accord | Partner vs. Rapac Communication Infrastructure |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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