Correlation Between Harel Insurance and G Willi
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and G Willi 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 G Willi 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 G Willi Food International, you can compare the effects of market volatilities on Harel Insurance and G Willi 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 G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and G Willi.
Diversification Opportunities for Harel Insurance and G Willi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harel and WILC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food 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 G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Harel Insurance i.e., Harel Insurance and G Willi go up and down completely randomly.
Pair Corralation between Harel Insurance and G Willi
Assuming the 90 days trading horizon Harel Insurance is expected to generate 1.46 times less return on investment than G Willi. But when comparing it to its historical volatility, Harel Insurance Investments is 1.9 times less risky than G Willi. It trades about 0.41 of its potential returns per unit of risk. G Willi Food International is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 450,700 in G Willi Food International on September 1, 2024 and sell it today you would earn a total of 80,600 from holding G Willi Food International or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. G Willi Food International
Performance |
| Timeline |
| Harel Insurance Inve |
| G Willi Food |
Harel Insurance and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and G Willi
The main advantage of trading using opposite Harel Insurance and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi'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 |
| G Willi vs. Retailors | G Willi vs. Meitav Trade Inv | G Willi vs. Technoplus Ventures | G Willi vs. Abra Information Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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