Correlation Between Bezeq Israeli and Kamada
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Kamada 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 Kamada 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 Kamada, you can compare the effects of market volatilities on Bezeq Israeli and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Kamada.
Diversification Opportunities for Bezeq Israeli and Kamada
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bezeq and Kamada is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Kamada go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Kamada
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 0.94 times more return on investment than Kamada. However, Bezeq Israeli Telecommunication is 1.06 times less risky than Kamada. It trades about 0.3 of its potential returns per unit of risk. Kamada is currently generating about -0.08 per unit of risk. If you would invest 47,990 in Bezeq Israeli Telecommunication on September 1, 2024 and sell it today you would earn a total of 4,150 from holding Bezeq Israeli Telecommunication or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Kamada
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Kamada |
Bezeq Israeli and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Kamada
The main advantage of trading using opposite Bezeq Israeli and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada'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 |
| Kamada vs. Bezeq Israeli Telecommunication | Kamada vs. Brainsway | Kamada vs. Mivne Real Estate | Kamada vs. Photomyne |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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