Correlation Between Clal Insurance and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Clal Insurance and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Batm Advanced.
Diversification Opportunities for Clal Insurance and Batm Advanced
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clal and Batm is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Clal Insurance i.e., Clal Insurance and Batm Advanced go up and down completely randomly.
Pair Corralation between Clal Insurance and Batm Advanced
Assuming the 90 days trading horizon Clal Insurance Enterprises is expected to generate 1.02 times more return on investment than Batm Advanced. However, Clal Insurance is 1.02 times more volatile than Batm Advanced Communications. It trades about 0.15 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.02 per unit of risk. If you would invest 595,500 in Clal Insurance Enterprises on September 2, 2024 and sell it today you would earn a total of 175,700 from holding Clal Insurance Enterprises or generate 29.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Batm Advanced Communications
Performance |
| Timeline |
| Clal Insurance Enter |
| Batm Advanced Commun |
Clal Insurance and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Batm Advanced
The main advantage of trading using opposite Clal Insurance and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Clal Insurance vs. Migdal Insurance | Clal Insurance vs. Harel Insurance Investments | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Bank Hapoalim |
| Batm Advanced vs. Storage Drop Storage | Batm Advanced vs. Brainsway | Batm Advanced vs. Mivne Real Estate | Batm Advanced vs. Photomyne |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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