Correlation Between ICL Israel and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both ICL Israel and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on ICL Israel and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and Suny Cellular.
Diversification Opportunities for ICL Israel and Suny Cellular
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ICL and Suny is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of ICL Israel i.e., ICL Israel and Suny Cellular go up and down completely randomly.
Pair Corralation between ICL Israel and Suny Cellular
Assuming the 90 days trading horizon ICL Israel Chemicals is expected to under-perform the Suny Cellular. In addition to that, ICL Israel is 1.09 times more volatile than Suny Cellular Communication. It trades about -0.02 of its total potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.06 per unit of volatility. If you would invest 9,788 in Suny Cellular Communication on September 12, 2024 and sell it today you would earn a total of 3,352 from holding Suny Cellular Communication or generate 34.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. Suny Cellular Communication
Performance |
| Timeline |
| ICL Israel Chemicals |
| Suny Cellular Commun |
ICL Israel and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and Suny Cellular
The main advantage of trading using opposite ICL Israel and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular'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 |
| Suny Cellular vs. Teva Pharmaceutical Industries | Suny Cellular vs. Elbit Systems | Suny Cellular vs. Nice | Suny Cellular vs. Bezeq Israeli Telecommunication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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