Correlation Between Bezeq Israeli and Silver Castle
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Silver Castle 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 Silver Castle 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 Silver Castle Holdings, you can compare the effects of market volatilities on Bezeq Israeli and Silver Castle 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 Silver Castle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Silver Castle.
Diversification Opportunities for Bezeq Israeli and Silver Castle
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bezeq and Silver is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Silver Castle Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Castle Holdings 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 Silver Castle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Castle Holdings has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Silver Castle go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Silver Castle
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 0.41 times more return on investment than Silver Castle. However, Bezeq Israeli Telecommunication is 2.46 times less risky than Silver Castle. It trades about 0.3 of its potential returns per unit of risk. Silver Castle Holdings is currently generating about -0.04 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Silver Castle Holdings
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Silver Castle Holdings |
Bezeq Israeli and Silver Castle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Silver Castle
The main advantage of trading using opposite Bezeq Israeli and Silver Castle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Silver Castle 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 Silver Castle will offset losses from the drop in Silver Castle'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 |
| Silver Castle vs. Generation Capital | Silver Castle vs. Meitav Dash Investments | Silver Castle vs. IBI Inv House | Silver Castle vs. Mivtach Shamir |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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