Correlation Between Feat Fund and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Bezeq Israeli 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 Feat Fund and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Feat Fund and Bezeq Israeli 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 Feat Fund with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Bezeq Israeli.
Diversification Opportunities for Feat Fund and Bezeq Israeli
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Feat and Bezeq is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Feat Fund 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 Feat Fund Investments are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Feat Fund i.e., Feat Fund and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Feat Fund and Bezeq Israeli
Assuming the 90 days trading horizon Feat Fund is expected to generate 1.27 times less return on investment than Bezeq Israeli. In addition to that, Feat Fund is 1.3 times more volatile than Bezeq Israeli Telecommunication. It trades about 0.13 of its total potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about 0.22 per unit of volatility. If you would invest 41,896 in Bezeq Israeli Telecommunication on October 26, 2024 and sell it today you would earn a total of 15,974 from holding Bezeq Israeli Telecommunication or generate 38.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Feat Fund Investments |
| Bezeq Israeli Teleco |
Feat Fund and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Bezeq Israeli
The main advantage of trading using opposite Feat Fund and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Feat Fund vs. G Willi Food International | Feat Fund vs. Sofwave Medical | Feat Fund vs. Elbit Medical Technologies | Feat Fund vs. Automatic Bank Services |
| Bezeq Israeli vs. Bank Leumi Le Israel | Bezeq Israeli vs. Teva Pharmaceutical Industries | Bezeq Israeli vs. Bank Hapoalim | Bezeq Israeli vs. Elbit Systems |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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