Correlation Between IShares NASDAQ and Harel Index
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By analyzing existing cross correlation between iShares NASDAQ 100 and Harel Index Funds, you can compare the effects of market volatilities on IShares NASDAQ and Harel Index 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 IShares NASDAQ with a short position of Harel Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares NASDAQ and Harel Index.
Diversification Opportunities for IShares NASDAQ and Harel Index
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Harel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares NASDAQ 100 and Harel Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Index Funds and IShares NASDAQ 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 iShares NASDAQ 100 are associated (or correlated) with Harel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Index Funds has no effect on the direction of IShares NASDAQ i.e., IShares NASDAQ and Harel Index go up and down completely randomly.
Pair Corralation between IShares NASDAQ and Harel Index
Assuming the 90 days trading horizon iShares NASDAQ 100 is expected to generate 0.88 times more return on investment than Harel Index. However, iShares NASDAQ 100 is 1.13 times less risky than Harel Index. It trades about 0.09 of its potential returns per unit of risk. Harel Index Funds is currently generating about 0.08 per unit of risk. If you would invest 38,360,000 in iShares NASDAQ 100 on September 3, 2024 and sell it today you would earn a total of 5,100,000 from holding iShares NASDAQ 100 or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares NASDAQ 100 vs. Harel Index Funds
Performance |
| Timeline |
| iShares NASDAQ 100 |
| Harel Index Funds |
IShares NASDAQ and Harel Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares NASDAQ and Harel Index
The main advantage of trading using opposite IShares NASDAQ and Harel Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares NASDAQ position performs unexpectedly, Harel Index 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 Harel Index will offset losses from the drop in Harel Index's long position.| IShares NASDAQ vs. Harel Index Funds | IShares NASDAQ vs. Harel Index Funds | IShares NASDAQ vs. Harel Sal SP |
| Harel Index vs. Harel Index Funds | Harel Index vs. Harel Sal Tel Bond | Harel Index vs. Harel Index Funds | Harel Index vs. Harel Index Funds |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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