Correlation Between Isras Investment and Delek
Can any of the company-specific risk be diversified away by investing in both Isras Investment and Delek 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 Isras Investment and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isras Investment and Delek Group, you can compare the effects of market volatilities on Isras Investment and Delek 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 Isras Investment with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isras Investment and Delek.
Diversification Opportunities for Isras Investment and Delek
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Isras and Delek is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Isras Investment and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Isras Investment 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 Isras Investment are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Isras Investment i.e., Isras Investment and Delek go up and down completely randomly.
Pair Corralation between Isras Investment and Delek
Assuming the 90 days trading horizon Isras Investment is expected to generate 0.78 times more return on investment than Delek. However, Isras Investment is 1.28 times less risky than Delek. It trades about 0.08 of its potential returns per unit of risk. Delek Group is currently generating about 0.05 per unit of risk. If you would invest 6,495,784 in Isras Investment on September 1, 2024 and sell it today you would earn a total of 1,932,216 from holding Isras Investment or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isras Investment vs. Delek Group
Performance |
| Timeline |
| Isras Investment |
| Delek Group |
Isras Investment and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isras Investment and Delek
The main advantage of trading using opposite Isras Investment and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isras Investment position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.| Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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