Correlation Between Gazit Globe and Sano Brunos
Can any of the company-specific risk be diversified away by investing in both Gazit Globe and Sano Brunos 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 Sano Brunos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gazit Globe and Sano Brunos Enterprises, you can compare the effects of market volatilities on Gazit Globe and Sano Brunos 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 Sano Brunos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gazit Globe and Sano Brunos.
Diversification Opportunities for Gazit Globe and Sano Brunos
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gazit and Sano is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gazit Globe and Sano Brunos Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sano Brunos Enterprises 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 Sano Brunos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sano Brunos Enterprises has no effect on the direction of Gazit Globe i.e., Gazit Globe and Sano Brunos go up and down completely randomly.
Pair Corralation between Gazit Globe and Sano Brunos
Assuming the 90 days trading horizon Gazit Globe is expected to generate 2.11 times less return on investment than Sano Brunos. But when comparing it to its historical volatility, Gazit Globe is 1.17 times less risky than Sano Brunos. It trades about 0.06 of its potential returns per unit of risk. Sano Brunos Enterprises is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,942,374 in Sano Brunos Enterprises on December 30, 2023 and sell it today you would earn a total of 99,126 from holding Sano Brunos Enterprises or generate 3.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gazit Globe vs. Sano Brunos Enterprises
Performance |
Timeline |
Gazit Globe |
Sano Brunos Enterprises |
Gazit Globe and Sano Brunos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gazit Globe and Sano Brunos
The main advantage of trading using opposite Gazit Globe and Sano Brunos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gazit Globe position performs unexpectedly, Sano Brunos 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 Sano Brunos will offset losses from the drop in Sano Brunos' long position.Gazit Globe vs. Bank Leumi Le Israel | Gazit Globe vs. Mizrahi Tefahot | Gazit Globe vs. Israel Discount Bank | Gazit Globe vs. Migdal Insurance |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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