Correlation Between Bezeq Israeli and Isras Investment
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Isras Investment 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 Isras Investment 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 Isras Investment, you can compare the effects of market volatilities on Bezeq Israeli and Isras Investment 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 Isras Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Isras Investment.
Diversification Opportunities for Bezeq Israeli and Isras Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bezeq and Isras is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Isras Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isras Investment 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 Isras Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isras Investment has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Isras Investment go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Isras Investment
Assuming the 90 days trading horizon Bezeq Israeli is expected to generate 1.12 times less return on investment than Isras Investment. But when comparing it to its historical volatility, Bezeq Israeli Telecommunication is 1.13 times less risky than Isras Investment. It trades about 0.07 of its potential returns per unit of risk. Isras Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,767,671 in Isras Investment on November 5, 2024 and sell it today you would earn a total of 1,774,329 from holding Isras Investment or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Isras Investment
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Isras Investment |
Bezeq Israeli and Isras Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Isras Investment
The main advantage of trading using opposite Bezeq Israeli and Isras Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Isras Investment 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 Isras Investment will offset losses from the drop in Isras Investment'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 |
| Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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