Correlation Between Harel Insurance and Delek Automotive
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Delek Automotive 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 Delek Automotive 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 Delek Automotive Systems, you can compare the effects of market volatilities on Harel Insurance and Delek Automotive 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 Delek Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Delek Automotive.
Diversification Opportunities for Harel Insurance and Delek Automotive
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Delek is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Delek Automotive Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Automotive Systems 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 Delek Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Automotive Systems has no effect on the direction of Harel Insurance i.e., Harel Insurance and Delek Automotive go up and down completely randomly.
Pair Corralation between Harel Insurance and Delek Automotive
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.93 times more return on investment than Delek Automotive. However, Harel Insurance Investments is 1.08 times less risky than Delek Automotive. It trades about 0.18 of its potential returns per unit of risk. Delek Automotive Systems is currently generating about 0.11 per unit of risk. If you would invest 298,556 in Harel Insurance Investments on August 25, 2024 and sell it today you would earn a total of 121,444 from holding Harel Insurance Investments or generate 40.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Delek Automotive Systems
Performance |
| Timeline |
| Harel Insurance Inve |
| Delek Automotive Systems |
Harel Insurance and Delek Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Delek Automotive
The main advantage of trading using opposite Harel Insurance and Delek Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Delek Automotive 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 Delek Automotive will offset losses from the drop in Delek Automotive'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 |
| Delek Automotive vs. Alony Hetz Properties | Delek Automotive vs. Harel Insurance Investments | Delek Automotive vs. Delek Group | Delek Automotive vs. Migdal Insurance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |