Correlation Between Harel Sal and Psagot Index
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By analyzing existing cross correlation between Harel Sal SP and Psagot Index Funds, you can compare the effects of market volatilities on Harel Sal and Psagot 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and Psagot Index.
Diversification Opportunities for Harel Sal and Psagot Index
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Psagot is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal SP and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot 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 SP are associated (or correlated) with Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Harel Sal i.e., Harel Sal and Psagot Index go up and down completely randomly.
Pair Corralation between Harel Sal and Psagot Index
Assuming the 90 days trading horizon Harel Sal is expected to generate 1.05 times less return on investment than Psagot Index. But when comparing it to its historical volatility, Harel Sal SP is 1.05 times less risky than Psagot Index. It trades about 0.14 of its potential returns per unit of risk. Psagot Index Funds is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 193,100 in Psagot Index Funds on September 3, 2024 and sell it today you would earn a total of 32,100 from holding Psagot Index Funds or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Sal SP vs. Psagot Index Funds
Performance |
| Timeline |
| Harel Sal SP |
| Psagot Index Funds |
Harel Sal and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Sal and Psagot Index
The main advantage of trading using opposite Harel Sal and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Sal position performs unexpectedly, Psagot 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 Psagot Index will offset losses from the drop in Psagot Index's long position.| Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Sal Tel Bond | Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Index Funds |
| Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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