Correlation Between Harel Insurance and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and XTL Biopharmaceutica 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 XTL Biopharmaceutica 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 XTL Biopharmaceuticals, you can compare the effects of market volatilities on Harel Insurance and XTL Biopharmaceutica 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 XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and XTL Biopharmaceutica.
Diversification Opportunities for Harel Insurance and XTL Biopharmaceutica
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harel and XTL is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and XTL Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals 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 XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Harel Insurance i.e., Harel Insurance and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between Harel Insurance and XTL Biopharmaceutica
Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.37 times more return on investment than XTL Biopharmaceutica. However, Harel Insurance Investments is 2.69 times less risky than XTL Biopharmaceutica. It trades about 0.2 of its potential returns per unit of risk. XTL Biopharmaceuticals is currently generating about -0.13 per unit of risk. If you would invest 361,609 in Harel Insurance Investments on August 29, 2024 and sell it today you would earn a total of 72,891 from holding Harel Insurance Investments or generate 20.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Harel Insurance Investments vs. XTL Biopharmaceuticals
Performance |
| Timeline |
| Harel Insurance Inve |
| XTL Biopharmaceuticals |
Harel Insurance and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and XTL Biopharmaceutica
The main advantage of trading using opposite Harel Insurance and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.| Harel Insurance vs. Elbit Systems | Harel Insurance vs. Discount Investment Corp | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. AudioCodes |
| XTL Biopharmaceutica vs. XTL Biopharmaceuticals Ltd | XTL Biopharmaceutica vs. Intercure | XTL Biopharmaceutica vs. BioLine RX | XTL Biopharmaceutica vs. Foresight Autonomous Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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