Correlation Between Bezeq Israeli and Feat Fund
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Feat Fund 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 Bezeq Israeli and Feat Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bezeq Israeli Telecommunication and Feat Fund Investments, you can compare the effects of market volatilities on Bezeq Israeli and Feat Fund 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 Bezeq Israeli with a short position of Feat Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Feat Fund.
Diversification Opportunities for Bezeq Israeli and Feat Fund
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bezeq and Feat is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments and Bezeq Israeli 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 Bezeq Israeli Telecommunication are associated (or correlated) with Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Feat Fund go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Feat Fund
Assuming the 90 days trading horizon Bezeq Israeli is expected to generate 2.8 times less return on investment than Feat Fund. But when comparing it to its historical volatility, Bezeq Israeli Telecommunication is 4.53 times less risky than Feat Fund. It trades about 0.05 of its potential returns per unit of risk. Feat Fund Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,800 in Feat Fund Investments on September 3, 2024 and sell it today you would earn a total of 480.00 from holding Feat Fund Investments or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Feat Fund Investments
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Feat Fund Investments |
Bezeq Israeli and Feat Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Feat Fund
The main advantage of trading using opposite Bezeq Israeli and Feat Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Feat Fund 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 Feat Fund will offset losses from the drop in Feat Fund's long position.| Bezeq Israeli vs. Bank Leumi Le Israel | Bezeq Israeli vs. Teva Pharmaceutical Industries | Bezeq Israeli vs. Bank Hapoalim | Bezeq Israeli vs. Elbit Systems |
| Feat Fund vs. Bezeq Israeli Telecommunication | Feat Fund vs. Arad Investment Industrial | Feat Fund vs. Hiron Trade Investments Industrial | Feat Fund vs. Imed Infinity Medical Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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