Correlation Between Kamada and Spring Ventures
Can any of the company-specific risk be diversified away by investing in both Kamada and Spring Ventures 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 Kamada and Spring Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Spring Ventures, you can compare the effects of market volatilities on Kamada and Spring Ventures 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 Kamada with a short position of Spring Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Spring Ventures.
Diversification Opportunities for Kamada and Spring Ventures
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kamada and Spring is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Spring Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Ventures and Kamada 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 Kamada are associated (or correlated) with Spring Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Ventures has no effect on the direction of Kamada i.e., Kamada and Spring Ventures go up and down completely randomly.
Pair Corralation between Kamada and Spring Ventures
Assuming the 90 days trading horizon Kamada is expected to generate 0.45 times more return on investment than Spring Ventures. However, Kamada is 2.24 times less risky than Spring Ventures. It trades about 0.12 of its potential returns per unit of risk. Spring Ventures is currently generating about -0.12 per unit of risk. If you would invest 201,100 in Kamada on September 24, 2024 and sell it today you would earn a total of 17,700 from holding Kamada or generate 8.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kamada vs. Spring Ventures
Performance |
Timeline |
Kamada |
Spring Ventures |
Kamada and Spring Ventures Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kamada and Spring Ventures
The main advantage of trading using opposite Kamada and Spring Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Spring Ventures 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 Spring Ventures will offset losses from the drop in Spring Ventures' long position.Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
Spring Ventures vs. Capital Point | Spring Ventures vs. Mivtach Shamir | Spring Ventures vs. Fattal 1998 Holdings | Spring Ventures vs. Atreyu Capital Markets |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Money Managers Screen money managers from public funds and ETFs managed around the world |