Correlation Between Clal Insurance and Accel Solutions
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Accel Solutions 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 Clal Insurance and Accel Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clal Insurance Enterprises and Accel Solutions Group, you can compare the effects of market volatilities on Clal Insurance and Accel Solutions 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 Clal Insurance with a short position of Accel Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Accel Solutions.
Diversification Opportunities for Clal Insurance and Accel Solutions
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clal and Accel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Accel Solutions Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accel Solutions Group and Clal Insurance 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 Clal Insurance Enterprises are associated (or correlated) with Accel Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accel Solutions Group has no effect on the direction of Clal Insurance i.e., Clal Insurance and Accel Solutions go up and down completely randomly.
Pair Corralation between Clal Insurance and Accel Solutions
Assuming the 90 days trading horizon Clal Insurance is expected to generate 1.21 times less return on investment than Accel Solutions. But when comparing it to its historical volatility, Clal Insurance Enterprises is 1.13 times less risky than Accel Solutions. It trades about 0.04 of its potential returns per unit of risk. Accel Solutions Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,030 in Accel Solutions Group on September 3, 2024 and sell it today you would earn a total of 2,880 from holding Accel Solutions Group or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Accel Solutions Group
Performance |
| Timeline |
| Clal Insurance Enter |
| Accel Solutions Group |
Clal Insurance and Accel Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Accel Solutions
The main advantage of trading using opposite Clal Insurance and Accel Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Accel Solutions 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 Accel Solutions will offset losses from the drop in Accel Solutions' long position.| Clal Insurance vs. Bank Hapoalim | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. First International Bank | Clal Insurance vs. Elbit Systems |
| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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