Correlation Between Clal Insurance and Spring Ventures
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Spring Ventures 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 Spring Ventures 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 Spring Ventures, you can compare the effects of market volatilities on Clal Insurance and Spring Ventures 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 Spring Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Spring Ventures.
Diversification Opportunities for Clal Insurance and Spring Ventures
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clal and Spring is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Spring Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Ventures 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 Spring Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Ventures has no effect on the direction of Clal Insurance i.e., Clal Insurance and Spring Ventures go up and down completely randomly.
Pair Corralation between Clal Insurance and Spring Ventures
Assuming the 90 days trading horizon Clal Insurance Enterprises is expected to generate 0.43 times more return on investment than Spring Ventures. However, Clal Insurance Enterprises is 2.31 times less risky than Spring Ventures. It trades about 0.39 of its potential returns per unit of risk. Spring Ventures is currently generating about 0.09 per unit of risk. If you would invest 734,345 in Clal Insurance Enterprises on September 14, 2024 and sell it today you would earn a total of 125,655 from holding Clal Insurance Enterprises or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Clal Insurance Enterprises vs. Spring Ventures
Performance |
| Timeline |
| Clal Insurance Enter |
| Spring Ventures |
Clal Insurance and Spring Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clal Insurance and Spring Ventures
The main advantage of trading using opposite Clal Insurance and Spring Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Spring Ventures 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 Spring Ventures will offset losses from the drop in Spring Ventures' long position.| Clal Insurance vs. Bank Hapoalim | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Mizrahi Tefahot | Clal Insurance vs. Bezeq Israeli Telecommunication |
| Spring Ventures vs. Capital Point | Spring Ventures vs. Mivtach Shamir | Spring Ventures vs. Fattal 1998 Holdings | Spring Ventures vs. Atreyu Capital Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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