Correlation Between Bezeq Israeli and Imed Infinity
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Imed Infinity 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 Imed Infinity 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 Imed Infinity Medical Limited, you can compare the effects of market volatilities on Bezeq Israeli and Imed Infinity 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 Imed Infinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Imed Infinity.
Diversification Opportunities for Bezeq Israeli and Imed Infinity
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bezeq and Imed is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Imed Infinity Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imed Infinity Medical 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 Imed Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imed Infinity Medical has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Imed Infinity go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Imed Infinity
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 0.49 times more return on investment than Imed Infinity. However, Bezeq Israeli Telecommunication is 2.03 times less risky than Imed Infinity. It trades about 0.14 of its potential returns per unit of risk. Imed Infinity Medical Limited is currently generating about -0.06 per unit of risk. If you would invest 55,060 in Bezeq Israeli Telecommunication on November 4, 2024 and sell it today you would earn a total of 1,850 from holding Bezeq Israeli Telecommunication or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Imed Infinity Medical Limited
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Imed Infinity Medical |
Bezeq Israeli and Imed Infinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Imed Infinity
The main advantage of trading using opposite Bezeq Israeli and Imed Infinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Imed Infinity 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 Imed Infinity will offset losses from the drop in Imed Infinity'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 |
| Imed Infinity vs. Teuza A Fairchild | Imed Infinity vs. WhiteSmoke Software | Imed Infinity vs. Payment Financial Technologies | Imed Infinity vs. Spuntech |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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