Correlation Between Accel Solutions and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Clal Insurance 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 Accel Solutions and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Solutions Group and Clal Insurance Enterprises, you can compare the effects of market volatilities on Accel Solutions and Clal Insurance 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 Accel Solutions with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Clal Insurance.
Diversification Opportunities for Accel Solutions and Clal Insurance
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Accel and Clal is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and Accel Solutions 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 Accel Solutions Group are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of Accel Solutions i.e., Accel Solutions and Clal Insurance go up and down completely randomly.
Pair Corralation between Accel Solutions and Clal Insurance
Assuming the 90 days trading horizon Accel Solutions is expected to generate 2.82 times less return on investment than Clal Insurance. In addition to that, Accel Solutions is 1.56 times more volatile than Clal Insurance Enterprises. It trades about 0.1 of its total potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.44 per unit of volatility. If you would invest 611,000 in Clal Insurance Enterprises on September 3, 2024 and sell it today you would earn a total of 160,200 from holding Clal Insurance Enterprises or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Clal Insurance Enterprises
Performance |
| Timeline |
| Accel Solutions Group |
| Clal Insurance Enter |
Accel Solutions and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Clal Insurance
The main advantage of trading using opposite Accel Solutions and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
| Clal Insurance vs. Bank Hapoalim | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. First International Bank | Clal Insurance 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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