Correlation Between Cellcom Israel and Blender Financial
Can any of the company-specific risk be diversified away by investing in both Cellcom Israel and Blender Financial 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 Cellcom Israel and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellcom Israel and Blender Financial Technologies, you can compare the effects of market volatilities on Cellcom Israel and Blender Financial 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 Cellcom Israel with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellcom Israel and Blender Financial.
Diversification Opportunities for Cellcom Israel and Blender Financial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cellcom and Blender is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cellcom Israel and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and Cellcom Israel 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 Cellcom Israel are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of Cellcom Israel i.e., Cellcom Israel and Blender Financial go up and down completely randomly.
Pair Corralation between Cellcom Israel and Blender Financial
Assuming the 90 days trading horizon Cellcom Israel is expected to generate 0.96 times more return on investment than Blender Financial. However, Cellcom Israel is 1.05 times less risky than Blender Financial. It trades about 0.21 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.17 per unit of risk. If you would invest 176,100 in Cellcom Israel on August 31, 2024 and sell it today you would earn a total of 19,200 from holding Cellcom Israel or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellcom Israel vs. Blender Financial Technologies
Performance |
| Timeline |
| Cellcom Israel |
| Blender Financial |
Cellcom Israel and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellcom Israel and Blender Financial
The main advantage of trading using opposite Cellcom Israel and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellcom Israel position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| Cellcom Israel vs. Blender Financial Technologies | Cellcom Israel vs. Automatic Bank Services | Cellcom Israel vs. Bank Leumi Le Israel | Cellcom Israel vs. Payment Financial Technologies |
| Blender Financial vs. Isracard | Blender Financial vs. Jacob Finance And | Blender Financial vs. Bull Trading And |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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