Correlation Between Gazit Globe and Gix Internet
Can any of the company-specific risk be diversified away by investing in both Gazit Globe and Gix Internet 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 Gazit Globe and Gix Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gazit Globe and Gix Internet, you can compare the effects of market volatilities on Gazit Globe and Gix Internet 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 Gazit Globe with a short position of Gix Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gazit Globe and Gix Internet.
Diversification Opportunities for Gazit Globe and Gix Internet
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gazit and Gix is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gazit Globe and Gix Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gix Internet and Gazit Globe 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 Gazit Globe are associated (or correlated) with Gix Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gix Internet has no effect on the direction of Gazit Globe i.e., Gazit Globe and Gix Internet go up and down completely randomly.
Pair Corralation between Gazit Globe and Gix Internet
Assuming the 90 days trading horizon Gazit Globe is expected to under-perform the Gix Internet. But the stock apears to be less risky and, when comparing its historical volatility, Gazit Globe is 3.48 times less risky than Gix Internet. The stock trades about -0.11 of its potential returns per unit of risk. The Gix Internet is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,410 in Gix Internet on January 19, 2024 and sell it today you would earn a total of 90.00 from holding Gix Internet or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gazit Globe vs. Gix Internet
Performance |
| Timeline |
| Gazit Globe |
| Gix Internet |
Gazit Globe and Gix Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gazit Globe and Gix Internet
The main advantage of trading using opposite Gazit Globe and Gix Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gazit Globe position performs unexpectedly, Gix Internet 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 Gix Internet will offset losses from the drop in Gix Internet's long position.| Gazit Globe vs. Migdal Insurance | Gazit Globe vs. The Phoenix Holdings | Gazit Globe vs. Harel Insurance Investments | Gazit Globe vs. Clal Insurance Enterprises |
| Gix Internet vs. EN Shoham Business | Gix Internet vs. Accel Solutions Group | Gix Internet vs. SR Accord | Gix Internet 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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