Correlation Between Bezeq Israeli and Sella Real
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Sella Real 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 Sella Real 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 Sella Real Estate, you can compare the effects of market volatilities on Bezeq Israeli and Sella Real 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 Sella Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Sella Real.
Diversification Opportunities for Bezeq Israeli and Sella Real
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bezeq and Sella is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Sella Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sella Real Estate 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 Sella Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sella Real Estate has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Sella Real go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Sella Real
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 1.55 times more return on investment than Sella Real. However, Bezeq Israeli is 1.55 times more volatile than Sella Real Estate. It trades about 0.37 of its potential returns per unit of risk. Sella Real Estate is currently generating about 0.11 per unit of risk. If you would invest 52,400 in Bezeq Israeli Telecommunication on October 22, 2024 and sell it today you would earn a total of 5,200 from holding Bezeq Israeli Telecommunication or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.12% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Sella Real Estate
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Sella Real Estate |
Bezeq Israeli and Sella Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Sella Real
The main advantage of trading using opposite Bezeq Israeli and Sella Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Sella Real 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 Sella Real will offset losses from the drop in Sella Real'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 |
| Sella Real vs. Reit 1 | Sella Real vs. Bank Hapoalim | Sella Real vs. Azrieli Group | Sella Real vs. Amot 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |