Correlation Between Harel Insurance and Ashtrom
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Ashtrom 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 Ashtrom 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 Ashtrom Group, you can compare the effects of market volatilities on Harel Insurance and Ashtrom 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 Ashtrom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Ashtrom.
Diversification Opportunities for Harel Insurance and Ashtrom
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harel and Ashtrom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Ashtrom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtrom Group 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 Ashtrom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtrom Group has no effect on the direction of Harel Insurance i.e., Harel Insurance and Ashtrom go up and down completely randomly.
Pair Corralation between Harel Insurance and Ashtrom
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.65 times more return on investment than Ashtrom. However, Harel Insurance Investments is 1.53 times less risky than Ashtrom. It trades about 0.38 of its potential returns per unit of risk. Ashtrom Group is currently generating about -0.16 per unit of risk. If you would invest 492,772 in Harel Insurance Investments on October 26, 2024 and sell it today you would earn a total of 47,628 from holding Harel Insurance Investments or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Ashtrom Group
Performance |
| Timeline |
| Harel Insurance Inve |
| Ashtrom Group |
Harel Insurance and Ashtrom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Ashtrom
The main advantage of trading using opposite Harel Insurance and Ashtrom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Ashtrom 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 Ashtrom will offset losses from the drop in Ashtrom'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 |
| Ashtrom vs. Shikun Binui | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Amot Investments | Ashtrom vs. Azrieli Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |