Correlation Between Delek and Rami Levi
Can any of the company-specific risk be diversified away by investing in both Delek and Rami Levi 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 Rami Levi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Rami Levi, you can compare the effects of market volatilities on Delek and Rami Levi 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 Rami Levi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Rami Levi.
Diversification Opportunities for Delek and Rami Levi
Very poor diversification
The 3 months correlation between Delek and Rami is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Rami Levi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rami Levi 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 Rami Levi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rami Levi has no effect on the direction of Delek i.e., Delek and Rami Levi go up and down completely randomly.
Pair Corralation between Delek and Rami Levi
Assuming the 90 days trading horizon Delek Group is expected to generate 1.79 times more return on investment than Rami Levi. However, Delek is 1.79 times more volatile than Rami Levi. It trades about 0.07 of its potential returns per unit of risk. Rami Levi is currently generating about 0.07 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Rami Levi
Performance |
| Timeline |
| Delek Group |
| Rami Levi |
Delek and Rami Levi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Rami Levi
The main advantage of trading using opposite Delek and Rami Levi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Rami Levi 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 Rami Levi will offset losses from the drop in Rami Levi's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Rami Levi vs. Shufersal | Rami Levi vs. Bank Leumi Le Israel | Rami Levi vs. Bezeq Israeli Telecommunication | Rami Levi vs. Bank Hapoalim |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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