Correlation Between Harel Insurance and Amir Marketing
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Amir Marketing 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 Amir Marketing 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 Amir Marketing and, you can compare the effects of market volatilities on Harel Insurance and Amir Marketing 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 Amir Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Amir Marketing.
Diversification Opportunities for Harel Insurance and Amir Marketing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Amir is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing 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 Amir Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amir Marketing has no effect on the direction of Harel Insurance i.e., Harel Insurance and Amir Marketing go up and down completely randomly.
Pair Corralation between Harel Insurance and Amir Marketing
Assuming the 90 days trading horizon Harel Insurance is expected to generate 1.1 times less return on investment than Amir Marketing. But when comparing it to its historical volatility, Harel Insurance Investments is 1.0 times less risky than Amir Marketing. It trades about 0.13 of its potential returns per unit of risk. Amir Marketing and is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 178,188 in Amir Marketing and on September 3, 2024 and sell it today you would earn a total of 128,212 from holding Amir Marketing and or generate 71.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Amir Marketing and
Performance |
| Timeline |
| Harel Insurance Inve |
| Amir Marketing |
Harel Insurance and Amir Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Amir Marketing
The main advantage of trading using opposite Harel Insurance and Amir Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Amir Marketing 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 Amir Marketing will offset losses from the drop in Amir Marketing's long position.| Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Israel Discount Bank | Harel Insurance vs. First International Bank | Harel Insurance vs. Elbit Systems |
| Amir Marketing vs. EN Shoham Business | Amir Marketing vs. Accel Solutions Group | Amir Marketing vs. Mivtach Shamir | Amir Marketing vs. Rani Zim Shopping |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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