Correlation Between Black Sea and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Black Sea and Harel 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 Black Sea and Harel Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Sea Property and Harel Insurance Investments, you can compare the effects of market volatilities on Black Sea and Harel 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 Black Sea with a short position of Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Sea and Harel Insurance.
Diversification Opportunities for Black Sea and Harel Insurance
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and Harel is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Black Sea Property and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve and Black Sea 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 Black Sea Property are associated (or correlated) with Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Black Sea i.e., Black Sea and Harel Insurance go up and down completely randomly.
Pair Corralation between Black Sea and Harel Insurance
Assuming the 90 days trading horizon Black Sea is expected to generate 6.29 times less return on investment than Harel Insurance. In addition to that, Black Sea is 2.64 times more volatile than Harel Insurance Investments. It trades about 0.04 of its total potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.61 per unit of volatility. If you would invest 355,300 in Harel Insurance Investments on September 13, 2024 and sell it today you would earn a total of 127,700 from holding Harel Insurance Investments or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Black Sea Property vs. Harel Insurance Investments
Performance |
| Timeline |
| Black Sea Property |
| Harel Insurance Inve |
Black Sea and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Sea and Harel Insurance
The main advantage of trading using opposite Black Sea and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Sea position performs unexpectedly, Harel 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 Harel Insurance will offset losses from the drop in Harel Insurance's long position.| Black Sea vs. Netz Hotels | Black Sea vs. Blender Financial Technologies | Black Sea vs. Rapac Communication Infrastructure | Black Sea vs. Batm Advanced Communications |
| Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Israel Discount Bank | Harel Insurance vs. Mizrahi Tefahot | Harel Insurance 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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