Correlation Between Retailors and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both Retailors and Gamatronic Electronic 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 Retailors and Gamatronic Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retailors and Gamatronic Electronic Industries, you can compare the effects of market volatilities on Retailors and Gamatronic Electronic 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 Retailors with a short position of Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retailors and Gamatronic Electronic.
Diversification Opportunities for Retailors and Gamatronic Electronic
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Retailors and Gamatronic is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Retailors and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic and Retailors 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 Retailors are associated (or correlated) with Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Retailors i.e., Retailors and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between Retailors and Gamatronic Electronic
Assuming the 90 days trading horizon Retailors is expected to under-perform the Gamatronic Electronic. In addition to that, Retailors is 1.04 times more volatile than Gamatronic Electronic Industries. It trades about -0.05 of its total potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about 0.16 per unit of volatility. If you would invest 115,100 in Gamatronic Electronic Industries on April 23, 2025 and sell it today you would earn a total of 33,900 from holding Gamatronic Electronic Industries or generate 29.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.67% |
Values | Daily Returns |
Retailors vs. Gamatronic Electronic Industri
Performance |
Timeline |
Retailors |
Gamatronic Electronic |
Risk-Adjusted Performance
Good
Weak | Strong |
Retailors and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Retailors and Gamatronic Electronic
The main advantage of trading using opposite Retailors and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retailors position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic's long position.Retailors vs. Fox Wizel | Retailors vs. Terminal X Online | Retailors vs. Shufersal | Retailors vs. Israel Canada |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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