Correlation Between Harel Insurance and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Harel Insurance and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Batm Advanced.
Diversification Opportunities for Harel Insurance and Batm Advanced
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harel and Batm is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Harel Insurance i.e., Harel Insurance and Batm Advanced go up and down completely randomly.
Pair Corralation between Harel Insurance and Batm Advanced
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 1.1 times more return on investment than Batm Advanced. However, Harel Insurance is 1.1 times more volatile than Batm Advanced Communications. It trades about 0.27 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.11 per unit of risk. If you would invest 352,873 in Harel Insurance Investments on November 27, 2024 and sell it today you would earn a total of 231,827 from holding Harel Insurance Investments or generate 65.7% 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. Batm Advanced Communications
Performance |
| Timeline |
| Harel Insurance Inve |
| Batm Advanced Commun |
Harel Insurance and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Batm Advanced
The main advantage of trading using opposite Harel Insurance and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced'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 |
| Batm Advanced vs. RSL Electronics | Batm Advanced vs. Amir Marketing and | Batm Advanced vs. Meitav Dash Investments | Batm Advanced vs. WhiteSmoke Software |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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