Correlation Between Blender Financial and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Blender Financial and Clal Insurance 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 Blender Financial and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blender Financial Technologies and Clal Insurance Enterprises, you can compare the effects of market volatilities on Blender Financial and Clal Insurance 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 Blender Financial with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and Clal Insurance.
Diversification Opportunities for Blender Financial and Clal Insurance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blender and Clal is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of Blender Financial i.e., Blender Financial and Clal Insurance go up and down completely randomly.
Pair Corralation between Blender Financial and Clal Insurance
Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the Clal Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Blender Financial Technologies is 6.0 times less risky than Clal Insurance. The stock trades about -0.26 of its potential returns per unit of risk. The Clal Insurance Enterprises is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 908,100 in Clal Insurance Enterprises on November 27, 2024 and sell it today you would earn a total of 84,200 from holding Clal Insurance Enterprises or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blender Financial Technologies vs. Clal Insurance Enterprises
Performance |
| Timeline |
| Blender Financial |
| Clal Insurance Enter |
Blender Financial and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blender Financial and Clal Insurance
The main advantage of trading using opposite Blender Financial and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.| Blender Financial vs. More Mutual Funds | Blender Financial vs. Oron Group Investments | Blender Financial vs. Amanet Management Systems | Blender Financial vs. YD More Investments |
| Clal Insurance vs. Migdal Insurance | Clal Insurance vs. Harel Insurance Investments | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Bank Hapoalim |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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