Correlation Between Clal Insurance and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Delek Automotive 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 Delek Automotive 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 Delek Automotive Systems, you can compare the effects of market volatilities on Clal Insurance and Delek Automotive 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 Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Delek Automotive.
Diversification Opportunities for Clal Insurance and Delek Automotive
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clal and Delek is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems 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 Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Clal Insurance i.e., Clal Insurance and Delek Automotive go up and down completely randomly.
Pair Corralation between Clal Insurance and Delek Automotive
Assuming the 90 days trading horizon Clal Insurance is expected to generate 1.01 times less return on investment than Delek Automotive. But when comparing it to its historical volatility, Clal Insurance Enterprises is 1.26 times less risky than Delek Automotive. It trades about 0.08 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 200,800 in Delek Automotive Systems on September 4, 2024 and sell it today you would earn a total of 73,100 from holding Delek Automotive Systems or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Delek Automotive Systems
Performance |
| Timeline |
| Clal Insurance Enter |
| Delek Automotive Systems |
Clal Insurance and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Delek Automotive
The main advantage of trading using opposite Clal Insurance and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Delek Automotive 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 Delek Automotive will offset losses from the drop in Delek Automotive's long position.| Clal Insurance vs. Bank Hapoalim | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. First International Bank | Clal Insurance vs. Elbit Systems |
| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |