Correlation Between Harel Insurance and Oron Group
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Oron Group 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 Oron Group 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 Oron Group Investments, you can compare the effects of market volatilities on Harel Insurance and Oron Group 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 Oron Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Oron Group.
Diversification Opportunities for Harel Insurance and Oron Group
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Oron is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Oron Group Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oron Group Investments 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 Oron Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oron Group Investments has no effect on the direction of Harel Insurance i.e., Harel Insurance and Oron Group go up and down completely randomly.
Pair Corralation between Harel Insurance and Oron Group
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.69 times more return on investment than Oron Group. However, Harel Insurance Investments is 1.44 times less risky than Oron Group. It trades about 0.4 of its potential returns per unit of risk. Oron Group Investments is currently generating about 0.08 per unit of risk. If you would invest 392,000 in Harel Insurance Investments on September 2, 2024 and sell it today you would earn a total of 46,000 from holding Harel Insurance Investments or generate 11.73% 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. Oron Group Investments
Performance |
| Timeline |
| Harel Insurance Inve |
| Oron Group Investments |
Harel Insurance and Oron Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Oron Group
The main advantage of trading using opposite Harel Insurance and Oron Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Oron Group 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 Oron Group will offset losses from the drop in Oron Group'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 |
| Oron Group vs. Arad | Oron Group vs. Alony Hetz Properties | Oron Group vs. Airport City | Oron Group vs. Harel Insurance Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |