Correlation Between Delek Automotive and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Harel Insurance 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 Delek Automotive and Harel Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and Harel Insurance Investments, you can compare the effects of market volatilities on Delek Automotive and Harel Insurance 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 Delek Automotive with a short position of Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Harel Insurance.
Diversification Opportunities for Delek Automotive and Harel Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delek and Harel is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve and Delek Automotive 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 Delek Automotive Systems are associated (or correlated) with Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Delek Automotive i.e., Delek Automotive and Harel Insurance go up and down completely randomly.
Pair Corralation between Delek Automotive and Harel Insurance
Assuming the 90 days trading horizon Delek Automotive is expected to generate 1.11 times less return on investment than Harel Insurance. In addition to that, Delek Automotive is 1.35 times more volatile than Harel Insurance Investments. It trades about 0.4 of its total potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.6 per unit of volatility. If you would invest 364,100 in Harel Insurance Investments on August 29, 2024 and sell it today you would earn a total of 70,400 from holding Harel Insurance Investments or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Delek Automotive Systems vs. Harel Insurance Investments
Performance |
| Timeline |
| Delek Automotive Systems |
| Harel Insurance Inve |
Delek Automotive and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and Harel Insurance
The main advantage of trading using opposite Delek Automotive and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Harel Insurance 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 Harel Insurance will offset losses from the drop in Harel Insurance's long position.| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
| Harel Insurance vs. Elbit Systems | Harel Insurance vs. Discount Investment Corp | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. AudioCodes |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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