Correlation Between Bezeq Israeli and Gold Bond
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Gold Bond 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 Gold Bond 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 The Gold Bond, you can compare the effects of market volatilities on Bezeq Israeli and Gold Bond 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 Gold Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Gold Bond.
Diversification Opportunities for Bezeq Israeli and Gold Bond
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bezeq and Gold is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and The Gold Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bond 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 Gold Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bond has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Gold Bond go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Gold Bond
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 1.06 times more return on investment than Gold Bond. However, Bezeq Israeli is 1.06 times more volatile than The Gold Bond. It trades about 0.34 of its potential returns per unit of risk. The Gold Bond is currently generating about 0.25 per unit of risk. If you would invest 47,300 in Bezeq Israeli Telecommunication on August 31, 2024 and sell it today you would earn a total of 4,840 from holding Bezeq Israeli Telecommunication or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. The Gold Bond
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Gold Bond |
Bezeq Israeli and Gold Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Gold Bond
The main advantage of trading using opposite Bezeq Israeli and Gold Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Gold Bond 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 Gold Bond will offset losses from the drop in Gold Bond'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 |
| Gold Bond vs. Big Shopping Centers | Gold Bond vs. Al Bad Massuot Yitzhak | Gold Bond vs. Harel Insurance Investments | Gold Bond vs. Palram |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |