Correlation Between Tadir Gan and B Communications

Can any of the company-specific risk be diversified away by investing in both Tadir Gan and B Communications 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 Tadir Gan and B Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tadir Gan 1993 and B Communications, you can compare the effects of market volatilities on Tadir Gan and B Communications 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 Tadir Gan with a short position of B Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tadir Gan and B Communications.

Diversification Opportunities for Tadir Gan and B Communications

0.01

Correlation Coefficient

Tadir Gan  B Communications

Significant diversification

The 3 months correlation between Tadir and BCOM is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tadir Gan 1993 and B Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Communications and Tadir Gan 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 Tadir Gan 1993 are associated (or correlated) with B Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Communications has no effect on the direction of Tadir Gan i.e., Tadir Gan and B Communications go up and down completely randomly.

Pair Corralation between Tadir Gan and B Communications

Assuming the 90 days trading horizon Tadir Gan 1993 is expected to under-perform the B Communications. In addition to that, Tadir Gan is 1.32 times more volatile than B Communications. It trades about -0.01 of its total potential returns per unit of risk. B Communications is currently generating about 0.28 per unit of volatility. If you would invest  117,400  in B Communications on September 27, 2024 and sell it today you would earn a total of  47,100  from holding B Communications or generate 40.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tadir Gan 1993  vs.  B Communications

Tadir Gan 1993

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tadir Gan 1993 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tadir Gan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

B Communications

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in B Communications are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, B Communications sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tadir Gan and B Communications

The main advantage of trading using opposite Tadir Gan and B Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tadir Gan position performs unexpectedly, B Communications 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 B Communications will offset losses from the drop in B Communications' long position.

The idea behind Tadir Gan 1993 and B Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.