Correlation Between Harel Index and Dow Jones
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By analyzing existing cross correlation between Harel Index Funds and Dow Jones Industrial, you can compare the effects of market volatilities on Harel Index and Dow Jones 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 Index with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and Dow Jones.
Diversification Opportunities for Harel Index and Dow Jones
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harel and Dow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Harel Index 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 Index Funds are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Harel Index i.e., Harel Index and Dow Jones go up and down completely randomly.
Pair Corralation between Harel Index and Dow Jones
Assuming the 90 days trading horizon Harel Index is expected to generate 1.22 times less return on investment than Dow Jones. In addition to that, Harel Index is 1.42 times more volatile than Dow Jones Industrial. It trades about 0.15 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Harel Index Funds vs. Dow Jones Industrial
Performance |
| Timeline |
Harel Index and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Harel Index Funds
Pair trading matchups for Harel Index
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Harel Index and Dow Jones
The main advantage of trading using opposite Harel Index and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Harel Index vs. Harel Index Funds | Harel Index vs. Harel Sal Tel Bond | Harel Index vs. Harel Index Funds | Harel Index vs. Harel Index Funds |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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