Correlation Between Intel and Bezeq Israel
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Bezeq Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Bezeq The Israel, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Bezeq Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bezeq Israel.
Diversification Opportunities for Intel and Bezeq Israel
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Bezeq is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Bezeq Israel go up and down completely randomly.
Pair Corralation between Intel and Bezeq Israel
If you would invest 2,290 in Intel on August 30, 2024 and sell it today you would earn a total of 75.00 from holding Intel or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intel vs. Bezeq The Israel
Performance |
| Timeline |
| Intel |
| Bezeq The Israel |
Intel and Bezeq Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Bezeq Israel
The main advantage of trading using opposite Intel and Bezeq Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.The idea behind Intel and Bezeq The Israel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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