Correlation Between Delek and Holmes Place
Can any of the company-specific risk be diversified away by investing in both Delek and Holmes Place 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 Holmes Place into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Holmes Place International, you can compare the effects of market volatilities on Delek and Holmes Place 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 Holmes Place. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Holmes Place.
Diversification Opportunities for Delek and Holmes Place
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delek and Holmes is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Holmes Place International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holmes Place Interna 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 Holmes Place. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holmes Place Interna has no effect on the direction of Delek i.e., Delek and Holmes Place go up and down completely randomly.
Pair Corralation between Delek and Holmes Place
Assuming the 90 days trading horizon Delek Group is expected to generate 3.35 times more return on investment than Holmes Place. However, Delek is 3.35 times more volatile than Holmes Place International. It trades about 0.44 of its potential returns per unit of risk. Holmes Place International is currently generating about 0.41 per unit of risk. If you would invest 5,270,000 in Delek Group on November 27, 2024 and sell it today you would earn a total of 786,000 from holding Delek Group or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Holmes Place International
Performance |
| Timeline |
| Delek Group |
| Holmes Place Interna |
Delek and Holmes Place Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Holmes Place
The main advantage of trading using opposite Delek and Holmes Place positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Holmes Place 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 Holmes Place will offset losses from the drop in Holmes Place's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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