Correlation Between Israel Discount and Fattal 1998
Can any of the company-specific risk be diversified away by investing in both Israel Discount and Fattal 1998 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 Israel Discount and Fattal 1998 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel Discount Bank and Fattal 1998 Holdings, you can compare the effects of market volatilities on Israel Discount and Fattal 1998 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 Israel Discount with a short position of Fattal 1998. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Discount and Fattal 1998.
Diversification Opportunities for Israel Discount and Fattal 1998
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Israel and Fattal is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Israel Discount Bank and Fattal 1998 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fattal 1998 Holdings and Israel Discount 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 Israel Discount Bank are associated (or correlated) with Fattal 1998. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fattal 1998 Holdings has no effect on the direction of Israel Discount i.e., Israel Discount and Fattal 1998 go up and down completely randomly.
Pair Corralation between Israel Discount and Fattal 1998
Assuming the 90 days trading horizon Israel Discount is expected to generate 1.23 times less return on investment than Fattal 1998. But when comparing it to its historical volatility, Israel Discount Bank is 1.74 times less risky than Fattal 1998. It trades about 0.48 of its potential returns per unit of risk. Fattal 1998 Holdings is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,721,000 in Fattal 1998 Holdings on September 1, 2024 and sell it today you would earn a total of 551,000 from holding Fattal 1998 Holdings or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Israel Discount Bank vs. Fattal 1998 Holdings
Performance |
| Timeline |
| Israel Discount Bank |
| Fattal 1998 Holdings |
Israel Discount and Fattal 1998 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel Discount and Fattal 1998
The main advantage of trading using opposite Israel Discount and Fattal 1998 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Discount position performs unexpectedly, Fattal 1998 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 Fattal 1998 will offset losses from the drop in Fattal 1998's long position.| Israel Discount vs. Menif Financial Services | Israel Discount vs. Accel Solutions Group | Israel Discount vs. Rani Zim Shopping | Israel Discount vs. Rapac Communication Infrastructure |
| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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