Correlation Between Clal Insurance and Homebiogas
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Homebiogas 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 Homebiogas 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 Homebiogas, you can compare the effects of market volatilities on Clal Insurance and Homebiogas 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 Homebiogas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Homebiogas.
Diversification Opportunities for Clal Insurance and Homebiogas
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clal and Homebiogas is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Homebiogas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Homebiogas 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 Homebiogas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Homebiogas has no effect on the direction of Clal Insurance i.e., Clal Insurance and Homebiogas go up and down completely randomly.
Pair Corralation between Clal Insurance and Homebiogas
Assuming the 90 days trading horizon Clal Insurance Enterprises is expected to generate 0.2 times more return on investment than Homebiogas. However, Clal Insurance Enterprises is 5.06 times less risky than Homebiogas. It trades about 0.24 of its potential returns per unit of risk. Homebiogas is currently generating about 0.0 per unit of risk. If you would invest 937,000 in Clal Insurance Enterprises on December 1, 2024 and sell it today you would earn a total of 59,000 from holding Clal Insurance Enterprises or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Homebiogas
Performance |
| Timeline |
| Clal Insurance Enter |
| Homebiogas |
Clal Insurance and Homebiogas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Homebiogas
The main advantage of trading using opposite Clal Insurance and Homebiogas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Homebiogas 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 Homebiogas will offset losses from the drop in Homebiogas' long position.| Clal Insurance vs. Migdal Insurance | Clal Insurance vs. Harel Insurance Investments | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Bank Hapoalim |
| Homebiogas vs. WhiteSmoke Software | Homebiogas vs. Harel Insurance Investments | Homebiogas vs. Rapac Communication Infrastructure | Homebiogas vs. Bezeq Israeli Telecommunication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |