Correlation Between Harel Insurance and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Analyst IMS 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 Analyst IMS 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 Analyst IMS Investment, you can compare the effects of market volatilities on Harel Insurance and Analyst IMS 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 Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Analyst IMS.
Diversification Opportunities for Harel Insurance and Analyst IMS
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Analyst is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment 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 Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Harel Insurance i.e., Harel Insurance and Analyst IMS go up and down completely randomly.
Pair Corralation between Harel Insurance and Analyst IMS
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.94 times more return on investment than Analyst IMS. However, Harel Insurance Investments is 1.06 times less risky than Analyst IMS. It trades about 0.6 of its potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.43 per unit of risk. If you would invest 364,100 in Harel Insurance Investments on August 29, 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Analyst IMS Investment
Performance |
| Timeline |
| Harel Insurance Inve |
| Analyst IMS Investment |
Harel Insurance and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Analyst IMS
The main advantage of trading using opposite Harel Insurance and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Harel Insurance vs. Migdal Insurance | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Bank Leumi Le Israel |
| Analyst IMS vs. Payment Financial Technologies | Analyst IMS vs. Harel Insurance Investments | Analyst IMS vs. Nrgene Technologies | Analyst IMS vs. Technoplus Ventures |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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