Correlation Between International Business and Bezeq Israel
Can any of the company-specific risk be diversified away by investing in both International Business and Bezeq Israel 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 International Business and Bezeq Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Bezeq The Israel, you can compare the effects of market volatilities on International Business and Bezeq Israel 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 International Business with a short position of Bezeq Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Bezeq Israel.
Diversification Opportunities for International Business and Bezeq Israel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Bezeq is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Bezeq The Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq The Israel and International Business 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 International Business Machines are associated (or correlated) with Bezeq Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq The Israel has no effect on the direction of International Business i.e., International Business and Bezeq Israel go up and down completely randomly.
Pair Corralation between International Business and Bezeq Israel
Considering the 90-day investment horizon International Business Machines is expected to generate 5.62 times more return on investment than Bezeq Israel. However, International Business is 5.62 times more volatile than Bezeq The Israel. It trades about 0.06 of its potential returns per unit of risk. Bezeq The Israel is currently generating about -0.15 per unit of risk. If you would invest 21,935 in International Business Machines on August 30, 2024 and sell it today you would earn a total of 757.00 from holding International Business Machines or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
International Business Machine vs. Bezeq The Israel
Performance |
| Timeline |
| International Business |
| Bezeq The Israel |
International Business and Bezeq Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Bezeq Israel
The main advantage of trading using opposite International Business and Bezeq Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, Bezeq Israel 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 Bezeq Israel will offset losses from the drop in Bezeq Israel's long position.| International Business vs. The Hackett Group | International Business vs. Nayax | International Business vs. Formula Systems 1985 | International Business vs. Information Services Group |
| Bezeq Israel vs. KT Corporation | Bezeq Israel vs. Cable One | Bezeq Israel vs. Millicom International Cellular | Bezeq Israel vs. Liberty Latin America |
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 Stocks Directory module to find actively traded stocks across global markets.
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