Correlation Between Harel Sal and Tachlit Index
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By analyzing existing cross correlation between Harel Sal SP and Tachlit Index Sal, you can compare the effects of market volatilities on Harel Sal and Tachlit 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 Tachlit Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and Tachlit Index.
Diversification Opportunities for Harel Sal and Tachlit Index
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Tachlit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal SP and Tachlit Index Sal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tachlit Index Sal 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 Tachlit Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tachlit Index Sal has no effect on the direction of Harel Sal i.e., Harel Sal and Tachlit Index go up and down completely randomly.
Pair Corralation between Harel Sal and Tachlit Index
Assuming the 90 days trading horizon Harel Sal SP is expected to generate 0.9 times more return on investment than Tachlit Index. However, Harel Sal SP is 1.11 times less risky than Tachlit Index. It trades about 0.25 of its potential returns per unit of risk. Tachlit Index Sal is currently generating about 0.08 per unit of risk. If you would invest 539,800 in Harel Sal SP on September 4, 2024 and sell it today you would earn a total of 49,200 from holding Harel Sal SP or generate 9.11% 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. Tachlit Index Sal
Performance |
| Timeline |
| Harel Sal SP |
| Tachlit Index Sal |
Harel Sal and Tachlit Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Sal and Tachlit Index
The main advantage of trading using opposite Harel Sal and Tachlit Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Sal position performs unexpectedly, Tachlit 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 Tachlit Index will offset losses from the drop in Tachlit Index's long position.The idea behind Harel Sal SP and Tachlit Index Sal 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.| Tachlit Index vs. Harel Index Funds | Tachlit Index vs. Harel Index Funds | Tachlit Index vs. Harel Sal SP |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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