Correlation Between Ethereum and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Ethereum and Israel Discount 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 Ethereum and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and Israel Discount Bank, you can compare the effects of market volatilities on Ethereum and Israel Discount 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 Ethereum with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Israel Discount.
Diversification Opportunities for Ethereum and Israel Discount
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ethereum and Israel is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank and Ethereum 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 Ethereum are associated (or correlated) with Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Ethereum i.e., Ethereum and Israel Discount go up and down completely randomly.
Pair Corralation between Ethereum and Israel Discount
Assuming the 90 days trading horizon Ethereum is expected to generate 3.52 times more return on investment than Israel Discount. However, Ethereum is 3.52 times more volatile than Israel Discount Bank. It trades about 0.06 of its potential returns per unit of risk. Israel Discount Bank is currently generating about 0.07 per unit of risk. If you would invest 155,614 in Ethereum on November 2, 2024 and sell it today you would earn a total of 174,839 from holding Ethereum or generate 112.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.2% |
| Values | Daily Returns |
Ethereum vs. Israel Discount Bank
Performance |
| Timeline |
| Ethereum |
| Israel Discount Bank |
Ethereum and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and Israel Discount
The main advantage of trading using opposite Ethereum and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.| Ethereum vs. Ethereum Classic | Ethereum vs. Ethereum PoW | Ethereum vs. Ethereum Name Service | Ethereum vs. ORN |
| Israel Discount vs. Bank Leumi Le Israel | Israel Discount vs. Bank Hapoalim | Israel Discount vs. Mizrahi Tefahot | Israel Discount vs. Bezeq Israeli Telecommunication |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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