Correlation Between Harel Sal and Tachlit Indices
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By analyzing existing cross correlation between Harel Sal SP and Tachlit Indices MF, you can compare the effects of market volatilities on Harel Sal and Tachlit Indices 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 Indices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and Tachlit Indices.
Diversification Opportunities for Harel Sal and Tachlit Indices
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harel and Tachlit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal SP and Tachlit Indices MF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tachlit Indices MF 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 Indices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tachlit Indices MF has no effect on the direction of Harel Sal i.e., Harel Sal and Tachlit Indices go up and down completely randomly.
Pair Corralation between Harel Sal and Tachlit Indices
Assuming the 90 days trading horizon Harel Sal SP is expected to generate 4.73 times more return on investment than Tachlit Indices. However, Harel Sal is 4.73 times more volatile than Tachlit Indices MF. It trades about 0.25 of its potential returns per unit of risk. Tachlit Indices MF is currently generating about 0.2 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Sal SP vs. Tachlit Indices MF
Performance |
| Timeline |
| Harel Sal SP |
| Tachlit Indices MF |
Harel Sal and Tachlit Indices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Sal and Tachlit Indices
The main advantage of trading using opposite Harel Sal and Tachlit Indices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Sal position performs unexpectedly, Tachlit Indices 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 Indices will offset losses from the drop in Tachlit Indices' long position.The idea behind Harel Sal SP and Tachlit Indices MF 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 Indices vs. Harel Index Funds | Tachlit Indices vs. Harel Index Funds | Tachlit Indices 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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