Correlation Between Clal Insurance and Electra
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Electra 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 Electra 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 Electra, you can compare the effects of market volatilities on Clal Insurance and Electra 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 Electra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Electra.
Diversification Opportunities for Clal Insurance and Electra
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clal and Electra is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Electra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra 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 Electra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra has no effect on the direction of Clal Insurance i.e., Clal Insurance and Electra go up and down completely randomly.
Pair Corralation between Clal Insurance and Electra
Assuming the 90 days trading horizon Clal Insurance is expected to generate 1.29 times less return on investment than Electra. In addition to that, Clal Insurance is 1.04 times more volatile than Electra. It trades about 0.35 of its total potential returns per unit of risk. Electra is currently generating about 0.47 per unit of volatility. If you would invest 16,200,000 in Electra on August 30, 2024 and sell it today you would earn a total of 2,800,000 from holding Electra or generate 17.28% 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. Electra
Performance |
| Timeline |
| Clal Insurance Enter |
| Electra |
Clal Insurance and Electra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Electra
The main advantage of trading using opposite Clal Insurance and Electra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Electra 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 Electra will offset losses from the drop in Electra's long position.| Clal Insurance vs. Elbit Systems | Clal Insurance vs. Discount Investment Corp | Clal Insurance vs. AudioCodes | Clal Insurance vs. Shufersal |
| Electra vs. Alony Hetz Properties | Electra vs. Melisron | Electra vs. Shufersal | Electra vs. Israel Discount Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |