Correlation Between ICL Israel and Blender Financial
Can any of the company-specific risk be diversified away by investing in both ICL Israel and Blender Financial 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 ICL Israel and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICL Israel Chemicals and Blender Financial Technologies, you can compare the effects of market volatilities on ICL Israel and Blender Financial 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 ICL Israel with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and Blender Financial.
Diversification Opportunities for ICL Israel and Blender Financial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICL and Blender is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and ICL Israel 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 ICL Israel Chemicals are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of ICL Israel i.e., ICL Israel and Blender Financial go up and down completely randomly.
Pair Corralation between ICL Israel and Blender Financial
Assuming the 90 days trading horizon ICL Israel Chemicals is expected to under-perform the Blender Financial. But the stock apears to be less risky and, when comparing its historical volatility, ICL Israel Chemicals is 1.5 times less risky than Blender Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Blender Financial Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 38,860 in Blender Financial Technologies on September 2, 2024 and sell it today you would lose (4,890) from holding Blender Financial Technologies or give up 12.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. Blender Financial Technologies
Performance |
| Timeline |
| ICL Israel Chemicals |
| Blender Financial |
ICL Israel and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and Blender Financial
The main advantage of trading using opposite ICL Israel and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| ICL Israel vs. Maytronics | ICL Israel vs. Shufersal | ICL Israel vs. Alony Hetz Properties | ICL Israel vs. Danel |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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