Correlation Between Delek Automotive and Gan Shmuel
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Gan Shmuel 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 Delek Automotive and Gan Shmuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and Gan Shmuel, you can compare the effects of market volatilities on Delek Automotive and Gan Shmuel 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 Delek Automotive with a short position of Gan Shmuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Gan Shmuel.
Diversification Opportunities for Delek Automotive and Gan Shmuel
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and Gan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Gan Shmuel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Shmuel and Delek Automotive 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 Delek Automotive Systems are associated (or correlated) with Gan Shmuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Shmuel has no effect on the direction of Delek Automotive i.e., Delek Automotive and Gan Shmuel go up and down completely randomly.
Pair Corralation between Delek Automotive and Gan Shmuel
Assuming the 90 days trading horizon Delek Automotive Systems is expected to generate 1.87 times more return on investment than Gan Shmuel. However, Delek Automotive is 1.87 times more volatile than Gan Shmuel. It trades about 0.32 of its potential returns per unit of risk. Gan Shmuel is currently generating about -0.16 per unit of risk. If you would invest 259,400 in Delek Automotive Systems on September 25, 2024 and sell it today you would earn a total of 31,800 from holding Delek Automotive Systems or generate 12.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 94.44% |
Values | Daily Returns |
Delek Automotive Systems vs. Gan Shmuel
Performance |
Timeline |
Delek Automotive Systems |
Gan Shmuel |
Delek Automotive and Gan Shmuel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Delek Automotive and Gan Shmuel
The main advantage of trading using opposite Delek Automotive and Gan Shmuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Gan Shmuel 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 Gan Shmuel will offset losses from the drop in Gan Shmuel's long position.Delek Automotive vs. Bank Leumi Le Israel | Delek Automotive vs. Mizrahi Tefahot | Delek Automotive vs. Norstar | Delek Automotive vs. Gazit Globe |
Gan Shmuel vs. Aryt Industries | Gan Shmuel vs. Kerur Holdings | Gan Shmuel vs. Scope Metals Group | Gan Shmuel vs. Delek Automotive Systems |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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