Correlation Between Harel Insurance and Wesure Global
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Wesure Global 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 Wesure Global 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 Wesure Global Tech, you can compare the effects of market volatilities on Harel Insurance and Wesure Global 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 Wesure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Wesure Global.
Diversification Opportunities for Harel Insurance and Wesure Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harel and Wesure is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Wesure Global Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesure Global Tech 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 Wesure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesure Global Tech has no effect on the direction of Harel Insurance i.e., Harel Insurance and Wesure Global go up and down completely randomly.
Pair Corralation between Harel Insurance and Wesure Global
Assuming the 90 days trading horizon Harel Insurance is expected to generate 2.28 times less return on investment than Wesure Global. But when comparing it to its historical volatility, Harel Insurance Investments is 1.55 times less risky than Wesure Global. It trades about 0.06 of its potential returns per unit of risk. Wesure Global Tech is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20,190 in Wesure Global Tech on September 3, 2024 and sell it today you would earn a total of 29,550 from holding Wesure Global Tech or generate 146.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Wesure Global Tech
Performance |
| Timeline |
| Harel Insurance Inve |
| Wesure Global Tech |
Harel Insurance and Wesure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Wesure Global
The main advantage of trading using opposite Harel Insurance and Wesure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Wesure Global 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 Wesure Global will offset losses from the drop in Wesure Global's long position.| Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Israel Discount Bank | Harel Insurance vs. First International Bank | Harel Insurance vs. Elbit Systems |
| Wesure Global vs. Bezeq Israeli Telecommunication | Wesure Global vs. Iargento Hi Tech | Wesure Global vs. Scope Metals Group | Wesure Global vs. Millennium Food Tech LP |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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