Correlation Between Hiron Trade and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both Hiron Trade and Gilat Satellite 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 Hiron Trade and Gilat Satellite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiron Trade Investments Industrial and Gilat Satellite Networks, you can compare the effects of market volatilities on Hiron Trade and Gilat Satellite 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 Hiron Trade with a short position of Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiron Trade and Gilat Satellite.
Diversification Opportunities for Hiron Trade and Gilat Satellite
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hiron and Gilat is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hiron Trade Investments Indust and Gilat Satellite Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Satellite Networks and Hiron Trade 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 Hiron Trade Investments Industrial are associated (or correlated) with Gilat Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Satellite Networks has no effect on the direction of Hiron Trade i.e., Hiron Trade and Gilat Satellite go up and down completely randomly.
Pair Corralation between Hiron Trade and Gilat Satellite
Assuming the 90 days trading horizon Hiron Trade Investments Industrial is expected to generate 1.04 times more return on investment than Gilat Satellite. However, Hiron Trade is 1.04 times more volatile than Gilat Satellite Networks. It trades about 0.06 of its potential returns per unit of risk. Gilat Satellite Networks is currently generating about -0.07 per unit of risk. If you would invest 16,988,500 in Hiron Trade Investments Industrial on January 20, 2024 and sell it today you would earn a total of 2,179,500 from holding Hiron Trade Investments Industrial or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.03% |
| Values | Daily Returns |
Hiron Trade Investments Indust vs. Gilat Satellite Networks
Performance |
| Timeline |
| Hiron Trade Investments |
| Gilat Satellite Networks |
Hiron Trade and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hiron Trade and Gilat Satellite
The main advantage of trading using opposite Hiron Trade and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiron Trade position performs unexpectedly, Gilat Satellite 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 Gilat Satellite will offset losses from the drop in Gilat Satellite's long position.| Hiron Trade vs. Migdal Insurance | Hiron Trade vs. The Phoenix Holdings | Hiron Trade vs. Harel Insurance Investments | Hiron Trade vs. Clal Insurance Enterprises |
| Gilat Satellite vs. Automatic Bank Services | Gilat Satellite vs. EN Shoham Business | Gilat Satellite vs. Rapac Communication Infrastructure | Gilat Satellite vs. Tadiran Hldg |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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