Correlation Between Knafaim and Aran Research
Can any of the company-specific risk be diversified away by investing in both Knafaim and Aran Research 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 Knafaim and Aran Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knafaim and Aran Research and, you can compare the effects of market volatilities on Knafaim and Aran Research 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 Knafaim with a short position of Aran Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knafaim and Aran Research.
Diversification Opportunities for Knafaim and Aran Research
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Knafaim and Aran is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Knafaim and Aran Research and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aran Research and Knafaim 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 Knafaim are associated (or correlated) with Aran Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aran Research has no effect on the direction of Knafaim i.e., Knafaim and Aran Research go up and down completely randomly.
Pair Corralation between Knafaim and Aran Research
Assuming the 90 days trading horizon Knafaim is expected to generate 1.21 times more return on investment than Aran Research. However, Knafaim is 1.21 times more volatile than Aran Research and. It trades about 0.26 of its potential returns per unit of risk. Aran Research and is currently generating about 0.06 per unit of risk. If you would invest 104,600 in Knafaim on September 14, 2024 and sell it today you would earn a total of 32,700 from holding Knafaim or generate 31.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.87% |
Values | Daily Returns |
Knafaim vs. Aran Research and
Performance |
Timeline |
Knafaim |
Aran Research |
Knafaim and Aran Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Knafaim and Aran Research
The main advantage of trading using opposite Knafaim and Aran Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knafaim position performs unexpectedly, Aran Research 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 Aran Research will offset losses from the drop in Aran Research's long position.Knafaim vs. Aran Research and | Knafaim vs. Al Bad Massuot Yitzhak | Knafaim vs. Analyst IMS Investment | Knafaim vs. Golan Plastic |
Aran Research vs. Al Bad Massuot Yitzhak | Aran Research vs. Analyst IMS Investment | Aran Research vs. Golan Plastic |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |