Correlation Between Hiron Trade and Clal Industries
Can any of the company-specific risk be diversified away by investing in both Hiron Trade and Clal Industries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hiron Trade and Clal Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hiron Trade Investments Industrial and Clal Industries and, you can compare the effects of market volatilities on Hiron Trade and Clal Industries 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 Hiron Trade with a short position of Clal Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hiron Trade and Clal Industries.
Diversification Opportunities for Hiron Trade and Clal Industries
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hiron and Clal is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hiron Trade Investments Indust and Clal Industries and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Industries and Hiron Trade 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 Hiron Trade Investments Industrial are associated (or correlated) with Clal Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Industries has no effect on the direction of Hiron Trade i.e., Hiron Trade and Clal Industries go up and down completely randomly.
Pair Corralation between Hiron Trade and Clal Industries
Assuming the 90 days trading horizon Hiron Trade is expected to generate 4.05 times less return on investment than Clal Industries. But when comparing it to its historical volatility, Hiron Trade Investments Industrial is 2.57 times less risky than Clal Industries. It trades about 0.21 of its potential returns per unit of risk. Clal Industries and is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 187,000 in Clal Industries and on September 1, 2024 and sell it today you would earn a total of 30,900 from holding Clal Industries and or generate 16.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hiron Trade Investments Indust vs. Clal Industries and
Performance |
| Timeline |
| Hiron Trade Investments |
| Clal Industries |
Hiron Trade and Clal Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hiron Trade and Clal Industries
The main advantage of trading using opposite Hiron Trade and Clal Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hiron Trade position performs unexpectedly, Clal Industries 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 Clal Industries will offset losses from the drop in Clal Industries' long position.| Hiron Trade vs. The Gold Bond | Hiron Trade vs. Isras Investment | Hiron Trade vs. Sella Real Estate | Hiron Trade vs. Villar |
| Clal Industries vs. Israel Land Development | Clal Industries vs. Tower Semiconductor | Clal Industries vs. Mivtach Shamir | Clal Industries vs. Inbar Group Finance |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |