Correlation Between Harel Insurance and Elbit Medical
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Elbit Medical 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 Elbit Medical 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 Elbit Medical Technologies, you can compare the effects of market volatilities on Harel Insurance and Elbit Medical 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 Elbit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Elbit Medical.
Diversification Opportunities for Harel Insurance and Elbit Medical
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harel and Elbit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Elbit Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Medical Techno 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 Elbit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Medical Techno has no effect on the direction of Harel Insurance i.e., Harel Insurance and Elbit Medical go up and down completely randomly.
Pair Corralation between Harel Insurance and Elbit Medical
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.43 times more return on investment than Elbit Medical. However, Harel Insurance Investments is 2.34 times less risky than Elbit Medical. It trades about 0.32 of its potential returns per unit of risk. Elbit Medical Technologies is currently generating about 0.08 per unit of risk. If you would invest 308,882 in Harel Insurance Investments on November 3, 2024 and sell it today you would earn a total of 259,118 from holding Harel Insurance Investments or generate 83.89% 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. Elbit Medical Technologies
Performance |
| Timeline |
| Harel Insurance Inve |
| Elbit Medical Techno |
Harel Insurance and Elbit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Elbit Medical
The main advantage of trading using opposite Harel Insurance and Elbit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Elbit Medical 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 Elbit Medical will offset losses from the drop in Elbit Medical'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 |
| Elbit Medical vs. Blender Financial Technologies | Elbit Medical vs. Unicorn Technologies | Elbit Medical vs. Millennium Food Tech LP | Elbit Medical vs. Clal Biotechnology Industries |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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