Correlation Between Libra Insurance and Tel Aviv
Can any of the company-specific risk be diversified away by investing in both Libra Insurance and Tel Aviv 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 Libra Insurance and Tel Aviv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Libra Insurance and Tel Aviv 35, you can compare the effects of market volatilities on Libra Insurance and Tel Aviv 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 Libra Insurance with a short position of Tel Aviv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libra Insurance and Tel Aviv.
Diversification Opportunities for Libra Insurance and Tel Aviv
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Libra and Tel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Libra Insurance and Tel Aviv 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tel Aviv 35 and Libra 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 Libra Insurance are associated (or correlated) with Tel Aviv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tel Aviv 35 has no effect on the direction of Libra Insurance i.e., Libra Insurance and Tel Aviv go up and down completely randomly.
Pair Corralation between Libra Insurance and Tel Aviv
Assuming the 90 days trading horizon Libra Insurance is expected to generate 2.15 times more return on investment than Tel Aviv. However, Libra Insurance is 2.15 times more volatile than Tel Aviv 35. It trades about 0.27 of its potential returns per unit of risk. Tel Aviv 35 is currently generating about 0.28 per unit of risk. If you would invest 76,000 in Libra Insurance on August 25, 2024 and sell it today you would earn a total of 6,160 from holding Libra Insurance or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Libra Insurance vs. Tel Aviv 35
Performance |
| Timeline |
Libra Insurance and Tel Aviv Volatility Contrast
Predicted Return Density |
| Returns |
Libra Insurance
Pair trading matchups for Libra Insurance
Tel Aviv 35
Pair trading matchups for Tel Aviv
Pair Trading with Libra Insurance and Tel Aviv
The main advantage of trading using opposite Libra Insurance and Tel Aviv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libra Insurance position performs unexpectedly, Tel Aviv 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 Tel Aviv will offset losses from the drop in Tel Aviv's long position.| Libra Insurance vs. Elbit Medical Technologies | Libra Insurance vs. Victory Supermarket Chain | Libra Insurance vs. Terminal X Online | Libra Insurance vs. Azorim Investment Development |
| Tel Aviv vs. Feat Fund Investments | Tel Aviv vs. Libra Insurance | Tel Aviv vs. Blender Financial Technologies | Tel Aviv vs. Clal Insurance Enterprises |
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 Stocks Directory module to find actively traded stocks across global markets.
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