Correlation Between Harel Insurance and BioLine RX
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and BioLine RX 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 BioLine RX 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 BioLine RX, you can compare the effects of market volatilities on Harel Insurance and BioLine RX 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 BioLine RX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and BioLine RX.
Diversification Opportunities for Harel Insurance and BioLine RX
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harel and BioLine is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and BioLine RX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLine RX 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 BioLine RX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLine RX has no effect on the direction of Harel Insurance i.e., Harel Insurance and BioLine RX go up and down completely randomly.
Pair Corralation between Harel Insurance and BioLine RX
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.45 times more return on investment than BioLine RX. However, Harel Insurance Investments is 2.25 times less risky than BioLine RX. It trades about 0.05 of its potential returns per unit of risk. BioLine RX is currently generating about -0.01 per unit of risk. If you would invest 295,484 in Harel Insurance Investments on August 29, 2024 and sell it today you would earn a total of 134,016 from holding Harel Insurance Investments or generate 45.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. BioLine RX
Performance |
| Timeline |
| Harel Insurance Inve |
| BioLine RX |
Harel Insurance and BioLine RX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and BioLine RX
The main advantage of trading using opposite Harel Insurance and BioLine RX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, BioLine RX 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 BioLine RX will offset losses from the drop in BioLine RX's long position.| Harel Insurance vs. Elbit Systems | Harel Insurance vs. Discount Investment Corp | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. AudioCodes |
| BioLine RX vs. Evogene | BioLine RX vs. Enlivex Therapeutics | BioLine RX vs. Kamada | BioLine RX vs. Compugen |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |