Correlation Between Glassbox and ICL Israel
Can any of the company-specific risk be diversified away by investing in both Glassbox and ICL Israel 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 Glassbox and ICL Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glassbox and ICL Israel Chemicals, you can compare the effects of market volatilities on Glassbox and ICL Israel 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 Glassbox with a short position of ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glassbox and ICL Israel.
Diversification Opportunities for Glassbox and ICL Israel
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Glassbox and ICL is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Glassbox and ICL Israel Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICL Israel Chemicals and Glassbox 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 Glassbox are associated (or correlated) with ICL Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICL Israel Chemicals has no effect on the direction of Glassbox i.e., Glassbox and ICL Israel go up and down completely randomly.
Pair Corralation between Glassbox and ICL Israel
If you would invest 161,612 in ICL Israel Chemicals on September 3, 2024 and sell it today you would earn a total of 2,388 from holding ICL Israel Chemicals or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Glassbox vs. ICL Israel Chemicals
Performance |
| Timeline |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ICL Israel Chemicals |
Glassbox and ICL Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glassbox and ICL Israel
The main advantage of trading using opposite Glassbox and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glassbox position performs unexpectedly, ICL Israel 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 ICL Israel will offset losses from the drop in ICL Israel's long position.| Glassbox vs. Sarine Technologies | Glassbox vs. Batm Advanced Communications | Glassbox vs. IDI Insurance | Glassbox vs. Libra Insurance |
| ICL Israel vs. Elbit Systems | ICL Israel vs. Bezeq Israeli Telecommunication | ICL Israel vs. Bank Hapoalim | ICL Israel vs. Teva Pharmaceutical Industries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |