Correlation Between Gazit Globe and Intel
Can any of the company-specific risk be diversified away by investing in both Gazit Globe and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gazit Globe and Intel, you can compare the effects of market volatilities on Gazit Globe and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gazit Globe and Intel.
Diversification Opportunities for Gazit Globe and Intel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gazit and Intel is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gazit Globe and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Gazit Globe i.e., Gazit Globe and Intel go up and down completely randomly.
Pair Corralation between Gazit Globe and Intel
Assuming the 90 days trading horizon Gazit Globe is expected to generate 0.77 times more return on investment than Intel. However, Gazit Globe is 1.29 times less risky than Intel. It trades about 0.06 of its potential returns per unit of risk. Intel is currently generating about -0.28 per unit of risk. If you would invest 110,000 in Gazit Globe on January 17, 2024 and sell it today you would earn a total of 2,100 from holding Gazit Globe or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Gazit Globe vs. Intel
Performance |
| Timeline |
| Gazit Globe |
| Intel |
Gazit Globe and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gazit Globe and Intel
The main advantage of trading using opposite Gazit Globe and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gazit Globe position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.The idea behind Gazit Globe and Intel 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.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| 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 | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |