Correlation Between Bezeq Israeli and Psagot Index
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By analyzing existing cross correlation between Bezeq Israeli Telecommunication and Psagot Index Funds, you can compare the effects of market volatilities on Bezeq Israeli and Psagot Index 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Psagot Index.
Diversification Opportunities for Bezeq Israeli and Psagot Index
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bezeq and Psagot is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Psagot Index go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Psagot Index
Assuming the 90 days trading horizon Bezeq Israeli is expected to generate 5.58 times less return on investment than Psagot Index. In addition to that, Bezeq Israeli is 1.93 times more volatile than Psagot Index Funds. It trades about 0.01 of its total potential returns per unit of risk. Psagot Index Funds is currently generating about 0.13 per unit of volatility. If you would invest 237,800 in Psagot Index Funds on September 12, 2024 and sell it today you would earn a total of 125,800 from holding Psagot Index Funds or generate 52.9% 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. Psagot Index Funds
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Psagot Index Funds |
Bezeq Israeli and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Psagot Index
The main advantage of trading using opposite Bezeq Israeli and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index'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 |
| Psagot Index vs. Mivne Real Estate | Psagot Index vs. Photomyne | Psagot Index vs. Israel Land Development | Psagot Index vs. Bezeq Israeli Telecommunication |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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