Correlation Between Abra Information and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Abra Information and Bezeq Israeli 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 Abra Information and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abra Information Technologies and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Abra Information and Bezeq Israeli 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 Abra Information with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abra Information and Bezeq Israeli.
Diversification Opportunities for Abra Information and Bezeq Israeli
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abra and Bezeq is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Abra Information Technologies and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Abra Information 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 Abra Information Technologies are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Abra Information i.e., Abra Information and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Abra Information and Bezeq Israeli
Assuming the 90 days trading horizon Abra Information Technologies is expected to under-perform the Bezeq Israeli. In addition to that, Abra Information is 1.33 times more volatile than Bezeq Israeli Telecommunication. It trades about -0.44 of its total potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about 0.52 per unit of volatility. If you would invest 45,900 in Bezeq Israeli Telecommunication on August 29, 2024 and sell it today you would earn a total of 6,850 from holding Bezeq Israeli Telecommunication or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abra Information Technologies vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Abra Information Tec |
| Bezeq Israeli Teleco |
Abra Information and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abra Information and Bezeq Israeli
The main advantage of trading using opposite Abra Information and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abra Information position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Abra Information vs. Seach Medical Group | Abra Information vs. B Communications | Abra Information vs. Migdal Insurance | Abra Information vs. Amanet Management Systems |
| Bezeq Israeli vs. Bank Leumi Le Israel | Bezeq Israeli vs. Teva Pharmaceutical Industries | Bezeq Israeli vs. Bank Hapoalim | Bezeq Israeli vs. Elbit 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |