Correlation Between IDI Insurance and Levinstein Prop
Can any of the company-specific risk be diversified away by investing in both IDI Insurance and Levinstein Prop 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 IDI Insurance and Levinstein Prop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDI Insurance and Levinstein Prop, you can compare the effects of market volatilities on IDI Insurance and Levinstein Prop 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 IDI Insurance with a short position of Levinstein Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDI Insurance and Levinstein Prop.
Diversification Opportunities for IDI Insurance and Levinstein Prop
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IDI and Levinstein is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding IDI Insurance and Levinstein Prop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levinstein Prop and IDI Insurance 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 IDI Insurance are associated (or correlated) with Levinstein Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levinstein Prop has no effect on the direction of IDI Insurance i.e., IDI Insurance and Levinstein Prop go up and down completely randomly.
Pair Corralation between IDI Insurance and Levinstein Prop
Assuming the 90 days trading horizon IDI Insurance is expected to generate 5.75 times less return on investment than Levinstein Prop. But when comparing it to its historical volatility, IDI Insurance is 1.28 times less risky than Levinstein Prop. It trades about 0.13 of its potential returns per unit of risk. Levinstein Prop is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 566,400 in Levinstein Prop on August 28, 2024 and sell it today you would earn a total of 163,600 from holding Levinstein Prop or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDI Insurance vs. Levinstein Prop
Performance |
| Timeline |
| IDI Insurance |
| Levinstein Prop |
IDI Insurance and Levinstein Prop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDI Insurance and Levinstein Prop
The main advantage of trading using opposite IDI Insurance and Levinstein Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDI Insurance position performs unexpectedly, Levinstein Prop 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 Levinstein Prop will offset losses from the drop in Levinstein Prop's long position.| IDI Insurance vs. Bank Hapoalim | IDI Insurance vs. Israel Discount Bank | IDI Insurance vs. Bezeq Israeli Telecommunication | IDI Insurance vs. Elbit Systems |
| Levinstein Prop vs. Israel Canada | Levinstein Prop vs. Delek Group | Levinstein Prop vs. Shikun Binui | Levinstein Prop vs. Israel Discount Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets |