Correlation Between Lesico and El Al
Can any of the company-specific risk be diversified away by investing in both Lesico and El Al 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 Lesico and El Al into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lesico and El Al Israel, you can compare the effects of market volatilities on Lesico and El Al 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 Lesico with a short position of El Al. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lesico and El Al.
Diversification Opportunities for Lesico and El Al
Very weak diversification
The 3 months correlation between Lesico and ELAL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lesico and El Al Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Al Israel and Lesico 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 Lesico are associated (or correlated) with El Al. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Al Israel has no effect on the direction of Lesico i.e., Lesico and El Al go up and down completely randomly.
Pair Corralation between Lesico and El Al
Assuming the 90 days trading horizon Lesico is expected to generate 0.9 times more return on investment than El Al. However, Lesico is 1.11 times less risky than El Al. It trades about 0.47 of its potential returns per unit of risk. El Al Israel is currently generating about -0.08 per unit of risk. If you would invest 29,860 in Lesico on September 1, 2024 and sell it today you would earn a total of 10,730 from holding Lesico or generate 35.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lesico vs. El Al Israel
Performance |
| Timeline |
| Lesico |
| El Al Israel |
Lesico and El Al Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lesico and El Al
The main advantage of trading using opposite Lesico and El Al positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lesico position performs unexpectedly, El Al 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 El Al will offset losses from the drop in El Al's long position.| Lesico vs. Arad | Lesico vs. Alony Hetz Properties | Lesico vs. Airport City | Lesico vs. Harel Insurance Investments |
| El Al vs. Arad | El Al vs. Alony Hetz Properties | El Al vs. Airport City | El Al vs. Harel Insurance Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |