Correlation Between Delek and BioLine RX
Can any of the company-specific risk be diversified away by investing in both Delek and BioLine RX 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 and BioLine RX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and BioLine RX, you can compare the effects of market volatilities on Delek and BioLine RX 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 with a short position of BioLine RX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and BioLine RX.
Diversification Opportunities for Delek and BioLine RX
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Delek and BioLine is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and BioLine RX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLine RX and Delek 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 Group are associated (or correlated) with BioLine RX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLine RX has no effect on the direction of Delek i.e., Delek and BioLine RX go up and down completely randomly.
Pair Corralation between Delek and BioLine RX
Assuming the 90 days trading horizon Delek Group is expected to generate 0.46 times more return on investment than BioLine RX. However, Delek Group is 2.18 times less risky than BioLine RX. It trades about 0.07 of its potential returns per unit of risk. BioLine RX is currently generating about -0.05 per unit of risk. If you would invest 2,867,495 in Delek Group on November 2, 2024 and sell it today you would earn a total of 2,343,505 from holding Delek Group or generate 81.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. BioLine RX
Performance |
| Timeline |
| Delek Group |
| BioLine RX |
Delek and BioLine RX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and BioLine RX
The main advantage of trading using opposite Delek and BioLine RX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, BioLine RX 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 BioLine RX will offset losses from the drop in BioLine RX's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| BioLine RX vs. Evogene | BioLine RX vs. Enlivex Therapeutics | BioLine RX vs. Kamada | BioLine RX vs. Compugen |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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