Correlation Between ICL Israel and Glassbox
Can any of the company-specific risk be diversified away by investing in both ICL Israel and Glassbox 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 Glassbox 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 Glassbox, you can compare the effects of market volatilities on ICL Israel and Glassbox 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 Glassbox. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and Glassbox.
Diversification Opportunities for ICL Israel and Glassbox
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICL and Glassbox is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox 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 Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of ICL Israel i.e., ICL Israel and Glassbox go up and down completely randomly.
Pair Corralation between ICL Israel and Glassbox
Assuming the 90 days trading horizon ICL Israel Chemicals is expected to under-perform the Glassbox. But the stock apears to be less risky and, when comparing its historical volatility, ICL Israel Chemicals is 1.33 times less risky than Glassbox. The stock trades about 0.0 of its potential returns per unit of risk. The Glassbox is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 232,100 in Glassbox on August 25, 2024 and sell it today you would earn a total of 173,800 from holding Glassbox or generate 74.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.64% |
| Values | Daily Returns |
ICL Israel Chemicals vs. Glassbox
Performance |
| Timeline |
| ICL Israel Chemicals |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
ICL Israel and Glassbox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and Glassbox
The main advantage of trading using opposite ICL Israel and Glassbox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel position performs unexpectedly, Glassbox 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 Glassbox will offset losses from the drop in Glassbox's long position.| ICL Israel vs. Elbit Systems | ICL Israel vs. Bezeq Israeli Telecommunication | ICL Israel vs. Bank Hapoalim | ICL Israel vs. Teva Pharmaceutical Industries |
| Glassbox vs. Nice | Glassbox vs. The Gold Bond | Glassbox vs. Bank Leumi Le Israel | Glassbox vs. ICL Israel Chemicals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |