Correlation Between Cellcom Israel and Bandwidth
Can any of the company-specific risk be diversified away by investing in both Cellcom Israel and Bandwidth 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 Bandwidth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellcom Israel and Bandwidth, you can compare the effects of market volatilities on Cellcom Israel and Bandwidth 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 Bandwidth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellcom Israel and Bandwidth.
Diversification Opportunities for Cellcom Israel and Bandwidth
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellcom and Bandwidth is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cellcom Israel and Bandwidth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandwidth 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 Bandwidth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandwidth has no effect on the direction of Cellcom Israel i.e., Cellcom Israel and Bandwidth go up and down completely randomly.
Pair Corralation between Cellcom Israel and Bandwidth
Assuming the 90 days horizon Cellcom Israel is expected to generate 0.98 times more return on investment than Bandwidth. However, Cellcom Israel is 1.02 times less risky than Bandwidth. It trades about 0.07 of its potential returns per unit of risk. Bandwidth is currently generating about 0.02 per unit of risk. If you would invest 422.00 in Cellcom Israel on September 25, 2025 and sell it today you would earn a total of 726.00 from holding Cellcom Israel or generate 172.04% 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. Bandwidth
Performance |
| Timeline |
| Cellcom Israel |
| Bandwidth |
Cellcom Israel and Bandwidth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellcom Israel and Bandwidth
The main advantage of trading using opposite Cellcom Israel and Bandwidth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellcom Israel position performs unexpectedly, Bandwidth 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 Bandwidth will offset losses from the drop in Bandwidth's long position.| Cellcom Israel vs. ATT Inc | Cellcom Israel vs. MTN Group Ltd | Cellcom Israel vs. Vodacom Group Ltd | Cellcom Israel vs. Telenor ASA ADR |
| Bandwidth vs. Walt Disney | Bandwidth vs. T Mobile | Bandwidth vs. Comcast Corp | Bandwidth vs. America Movil SAB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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