Correlation Between Bezeq Israeli and Peninsula
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Peninsula 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 Peninsula 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 Peninsula Group, you can compare the effects of market volatilities on Bezeq Israeli and Peninsula 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 Peninsula. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Peninsula.
Diversification Opportunities for Bezeq Israeli and Peninsula
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bezeq and Peninsula is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Peninsula Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Group 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 Peninsula. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Group has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Peninsula go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Peninsula
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 1.11 times more return on investment than Peninsula. However, Bezeq Israeli is 1.11 times more volatile than Peninsula Group. It trades about 0.3 of its potential returns per unit of risk. Peninsula Group is currently generating about 0.33 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Peninsula Group
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Peninsula Group |
Bezeq Israeli and Peninsula Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Peninsula
The main advantage of trading using opposite Bezeq Israeli and Peninsula positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Peninsula 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 Peninsula will offset losses from the drop in Peninsula'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 |
| Peninsula vs. Opal Balance | Peninsula vs. Nawi Brothers Group | Peninsula vs. Mizrahi Tefahot | Peninsula vs. SR Accord |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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