Correlation Between Harel Sal and Harel Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Harel Sal Tel Bond and Harel Index Funds, you can compare the effects of market volatilities on Harel Sal and Harel Index 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 Sal with a short position of Harel Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and Harel Index.
Diversification Opportunities for Harel Sal and Harel Index
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Harel is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal Tel Bond and Harel Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Index Funds and Harel Sal 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 Sal Tel Bond are associated (or correlated) with Harel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Index Funds has no effect on the direction of Harel Sal i.e., Harel Sal and Harel Index go up and down completely randomly.
Pair Corralation between Harel Sal and Harel Index
Assuming the 90 days trading horizon Harel Sal is expected to generate 3.78 times less return on investment than Harel Index. But when comparing it to its historical volatility, Harel Sal Tel Bond is 8.46 times less risky than Harel Index. It trades about 0.32 of its potential returns per unit of risk. Harel Index Funds is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 238,700 in Harel Index Funds on August 29, 2024 and sell it today you would earn a total of 9,500 from holding Harel Index Funds or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Sal Tel Bond vs. Harel Index Funds
Performance |
| Timeline |
| Harel Sal Tel |
| Harel Index Funds |
Harel Sal and Harel Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Sal and Harel Index
The main advantage of trading using opposite Harel Sal and Harel Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Sal position performs unexpectedly, Harel Index 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 Harel Index will offset losses from the drop in Harel Index's long position.The idea behind Harel Sal Tel Bond and Harel Index Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |