Correlation Between Bet Shemesh and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Bet Shemesh 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 Bet Shemesh and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bet Shemesh Engines and Clal Insurance Enterprises, you can compare the effects of market volatilities on Bet Shemesh 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 Bet Shemesh with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet Shemesh and Clal Insurance.
Diversification Opportunities for Bet Shemesh and Clal Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bet and Clal is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bet Shemesh Engines 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 Bet Shemesh 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 Bet Shemesh Engines 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 Bet Shemesh i.e., Bet Shemesh and Clal Insurance go up and down completely randomly.
Pair Corralation between Bet Shemesh and Clal Insurance
Assuming the 90 days trading horizon Bet Shemesh Engines is expected to generate 1.33 times more return on investment than Clal Insurance. However, Bet Shemesh is 1.33 times more volatile than Clal Insurance Enterprises. It trades about 0.28 of its potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.31 per unit of risk. If you would invest 2,358,000 in Bet Shemesh Engines on August 29, 2024 and sell it today you would earn a total of 885,000 from holding Bet Shemesh Engines or generate 37.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bet Shemesh Engines vs. Clal Insurance Enterprises
Performance |
| Timeline |
| Bet Shemesh Engines |
| Clal Insurance Enter |
Bet Shemesh and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet Shemesh and Clal Insurance
The main advantage of trading using opposite Bet Shemesh and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet Shemesh 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.| Bet Shemesh vs. Danel | Bet Shemesh vs. Hilan | Bet Shemesh vs. Fattal 1998 Holdings | Bet Shemesh vs. Elbit Systems |
| Clal Insurance vs. Elbit Systems | Clal Insurance vs. Discount Investment Corp | Clal Insurance vs. AudioCodes | Clal Insurance vs. Shufersal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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