Correlation Between Harel Insurance and Bio Meat
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Bio Meat 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 Bio Meat 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 Bio Meat Foodtech, you can compare the effects of market volatilities on Harel Insurance and Bio Meat 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 Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Bio Meat.
Diversification Opportunities for Harel Insurance and Bio Meat
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harel and Bio is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech 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 Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of Harel Insurance i.e., Harel Insurance and Bio Meat go up and down completely randomly.
Pair Corralation between Harel Insurance and Bio Meat
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.6 times more return on investment than Bio Meat. However, Harel Insurance Investments is 1.65 times less risky than Bio Meat. It trades about 0.6 of its potential returns per unit of risk. Bio Meat Foodtech is currently generating about -0.12 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 Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Harel Insurance Investments vs. Bio Meat Foodtech
Performance |
| Timeline |
| Harel Insurance Inve |
| Bio Meat Foodtech |
Harel Insurance and Bio Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Bio Meat
The main advantage of trading using opposite Harel Insurance and Bio Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Bio Meat 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 Bio Meat will offset losses from the drop in Bio Meat's long position.| Harel Insurance vs. Elbit Systems | Harel Insurance vs. Discount Investment Corp | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. AudioCodes |
| Bio Meat vs. Altshuler Shaham Financial | Bio Meat vs. Meitav Dash Investments | Bio Meat vs. YD More Investments | Bio Meat vs. Analyst IMS Investment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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