Correlation Between Harel Insurance and Lesico
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Lesico 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 Lesico 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 Lesico, you can compare the effects of market volatilities on Harel Insurance and Lesico 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 Lesico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Lesico.
Diversification Opportunities for Harel Insurance and Lesico
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harel and Lesico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Lesico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesico 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 Lesico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesico has no effect on the direction of Harel Insurance i.e., Harel Insurance and Lesico go up and down completely randomly.
Pair Corralation between Harel Insurance and Lesico
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.69 times more return on investment than Lesico. However, Harel Insurance Investments is 1.45 times less risky than Lesico. It trades about 0.33 of its potential returns per unit of risk. Lesico is currently generating about -0.01 per unit of risk. If you would invest 491,308 in Harel Insurance Investments on November 30, 2024 and sell it today you would earn a total of 110,492 from holding Harel Insurance Investments or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.22% |
| Values | Daily Returns |
Harel Insurance Investments vs. Lesico
Performance |
| Timeline |
| Harel Insurance Inve |
| Lesico |
Harel Insurance and Lesico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Lesico
The main advantage of trading using opposite Harel Insurance and Lesico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Lesico 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 Lesico will offset losses from the drop in Lesico'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 |
| Lesico vs. Bank Leumi Le Israel | Lesico vs. Alrov Properties Lodgings | Lesico vs. Israel Discount Bank | Lesico vs. Ilex Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |