Correlation Between GFC Green and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both GFC Green 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 GFC Green and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFC Green Fields and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on GFC Green 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 GFC Green with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFC Green and Bezeq Israeli.
Diversification Opportunities for GFC Green and Bezeq Israeli
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GFC and Bezeq is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GFC Green Fields 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 GFC Green 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 GFC Green Fields 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 GFC Green i.e., GFC Green and Bezeq Israeli go up and down completely randomly.
Pair Corralation between GFC Green and Bezeq Israeli
If you would invest 47,950 in Bezeq Israeli Telecommunication on September 4, 2024 and sell it today you would earn a total of 4,290 from holding Bezeq Israeli Telecommunication or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GFC Green Fields vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| GFC Green Fields |
| Bezeq Israeli Teleco |
GFC Green and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFC Green and Bezeq Israeli
The main advantage of trading using opposite GFC Green and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFC Green 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.| GFC Green vs. Opko Health | GFC Green vs. Rimon Consulting Management | GFC Green vs. Clal Insurance Enterprises | GFC Green vs. Analyst IMS Investment |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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