Correlation Between Harel Insurance and Black Sea
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Black Sea 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 Black Sea 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 Black Sea Property, you can compare the effects of market volatilities on Harel Insurance and Black Sea 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 Black Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Black Sea.
Diversification Opportunities for Harel Insurance and Black Sea
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harel and Black is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Black Sea Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Sea Property 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 Black Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Sea Property has no effect on the direction of Harel Insurance i.e., Harel Insurance and Black Sea go up and down completely randomly.
Pair Corralation between Harel Insurance and Black Sea
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.41 times more return on investment than Black Sea. However, Harel Insurance Investments is 2.43 times less risky than Black Sea. It trades about 0.41 of its potential returns per unit of risk. Black Sea Property is currently generating about -0.06 per unit of risk. If you would invest 389,900 in Harel Insurance Investments on September 1, 2024 and sell it today you would earn a total of 48,100 from holding Harel Insurance Investments or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Black Sea Property
Performance |
| Timeline |
| Harel Insurance Inve |
| Black Sea Property |
Harel Insurance and Black Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Black Sea
The main advantage of trading using opposite Harel Insurance and Black Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Black Sea 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 Black Sea will offset losses from the drop in Black Sea's long position.| Harel Insurance vs. Menif Financial Services | Harel Insurance vs. Accel Solutions Group | Harel Insurance vs. Rani Zim Shopping | Harel Insurance vs. Rapac Communication Infrastructure |
| Black Sea vs. One Software Technologies | Black Sea vs. Iargento Hi Tech | Black Sea vs. Unicorn Technologies | Black Sea vs. Isras 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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