Correlation Between Gamatronic Electronic and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Gamatronic Electronic and Harel Insurance 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 Gamatronic Electronic and Harel Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamatronic Electronic Industries and Harel Insurance Investments, you can compare the effects of market volatilities on Gamatronic Electronic and Harel Insurance 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 Gamatronic Electronic with a short position of Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamatronic Electronic and Harel Insurance.
Diversification Opportunities for Gamatronic Electronic and Harel Insurance
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamatronic and Harel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gamatronic Electronic Industri and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve and Gamatronic Electronic 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 Gamatronic Electronic Industries are associated (or correlated) with Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Gamatronic Electronic i.e., Gamatronic Electronic and Harel Insurance go up and down completely randomly.
Pair Corralation between Gamatronic Electronic and Harel Insurance
Assuming the 90 days trading horizon Gamatronic Electronic is expected to generate 5.67 times less return on investment than Harel Insurance. In addition to that, Gamatronic Electronic is 1.17 times more volatile than Harel Insurance Investments. It trades about 0.06 of its total potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.41 per unit of volatility. If you would invest 389,900 in Harel Insurance Investments on September 1, 2024 and sell it today you would earn a total of 48,100 from holding Harel Insurance Investments or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamatronic Electronic Industri vs. Harel Insurance Investments
Performance |
| Timeline |
| Gamatronic Electronic |
| Harel Insurance Inve |
Gamatronic Electronic and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamatronic Electronic and Harel Insurance
The main advantage of trading using opposite Gamatronic Electronic and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamatronic Electronic position performs unexpectedly, Harel Insurance 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 Harel Insurance will offset losses from the drop in Harel Insurance's long position.The idea behind Gamatronic Electronic Industries and Harel Insurance Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Harel Insurance vs. Menif Financial Services | Harel Insurance vs. Accel Solutions Group | Harel Insurance vs. Rani Zim Shopping | Harel Insurance vs. Rapac Communication Infrastructure |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |