Correlation Between Harel Insurance and Axilion Smart
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Axilion Smart 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 Harel Insurance and Axilion Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harel Insurance Investments and Axilion Smart Mobility, you can compare the effects of market volatilities on Harel Insurance and Axilion Smart 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 Harel Insurance with a short position of Axilion Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Axilion Smart.
Diversification Opportunities for Harel Insurance and Axilion Smart
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harel and Axilion is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Axilion Smart Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axilion Smart Mobility and Harel Insurance 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 Harel Insurance Investments are associated (or correlated) with Axilion Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axilion Smart Mobility has no effect on the direction of Harel Insurance i.e., Harel Insurance and Axilion Smart go up and down completely randomly.
Pair Corralation between Harel Insurance and Axilion Smart
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.56 times more return on investment than Axilion Smart. However, Harel Insurance Investments is 1.77 times less risky than Axilion Smart. It trades about 0.62 of its potential returns per unit of risk. Axilion Smart Mobility is currently generating about -0.24 per unit of risk. If you would invest 364,100 in Harel Insurance Investments on August 28, 2024 and sell it today you would earn a total of 70,400 from holding Harel Insurance Investments or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Axilion Smart Mobility
Performance |
| Timeline |
| Harel Insurance Inve |
| Axilion Smart Mobility |
Harel Insurance and Axilion Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Axilion Smart
The main advantage of trading using opposite Harel Insurance and Axilion Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Axilion Smart 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 Axilion Smart will offset losses from the drop in Axilion Smart's long position.| Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Israel Discount Bank | Harel Insurance vs. Bezeq Israeli Telecommunication | Harel Insurance vs. Elbit Systems |
| Axilion Smart vs. Oron Group Investments | Axilion Smart vs. Hiron Trade Investments Industrial | Axilion Smart vs. Arad Investment Industrial | Axilion Smart vs. TAT Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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