Correlation Between Clal Insurance and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Clal Insurance and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Suny Cellular.
Diversification Opportunities for Clal Insurance and Suny Cellular
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clal and Suny is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Clal Insurance i.e., Clal Insurance and Suny Cellular go up and down completely randomly.
Pair Corralation between Clal Insurance and Suny Cellular
Assuming the 90 days trading horizon Clal Insurance is expected to generate 1.51 times less return on investment than Suny Cellular. But when comparing it to its historical volatility, Clal Insurance Enterprises is 1.62 times less risky than Suny Cellular. It trades about 0.25 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 10,510 in Suny Cellular Communication on September 1, 2024 and sell it today you would earn a total of 1,190 from holding Suny Cellular Communication or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Suny Cellular Communication
Performance |
| Timeline |
| Clal Insurance Enter |
| Suny Cellular Commun |
Clal Insurance and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Suny Cellular
The main advantage of trading using opposite Clal Insurance and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Clal Insurance vs. Menif Financial Services | Clal Insurance vs. Accel Solutions Group | Clal Insurance vs. Rani Zim Shopping | Clal Insurance vs. Rapac Communication Infrastructure |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |