Correlation Between Bank Leumi and Zur Shamir
Can any of the company-specific risk be diversified away by investing in both Bank Leumi and Zur Shamir 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 Bank Leumi and Zur Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Leumi Le Israel and Zur Shamir Holdings, you can compare the effects of market volatilities on Bank Leumi and Zur Shamir 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 Bank Leumi with a short position of Zur Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Leumi and Zur Shamir.
Diversification Opportunities for Bank Leumi and Zur Shamir
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Zur is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bank Leumi Le Israel and Zur Shamir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zur Shamir Holdings and Bank Leumi 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 Bank Leumi Le Israel are associated (or correlated) with Zur Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zur Shamir Holdings has no effect on the direction of Bank Leumi i.e., Bank Leumi and Zur Shamir go up and down completely randomly.
Pair Corralation between Bank Leumi and Zur Shamir
Assuming the 90 days trading horizon Bank Leumi Le Israel is expected to generate 0.97 times more return on investment than Zur Shamir. However, Bank Leumi Le Israel is 1.03 times less risky than Zur Shamir. It trades about 0.3 of its potential returns per unit of risk. Zur Shamir Holdings is currently generating about 0.23 per unit of risk. If you would invest 349,200 in Bank Leumi Le Israel on August 29, 2024 and sell it today you would earn a total of 79,900 from holding Bank Leumi Le Israel or generate 22.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Leumi Le Israel vs. Zur Shamir Holdings
Performance |
| Timeline |
| Bank Leumi Le |
| Zur Shamir Holdings |
Bank Leumi and Zur Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Leumi and Zur Shamir
The main advantage of trading using opposite Bank Leumi and Zur Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Leumi position performs unexpectedly, Zur Shamir 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 Zur Shamir will offset losses from the drop in Zur Shamir's long position.| Bank Leumi vs. Elbit Systems | Bank Leumi vs. Discount Investment Corp | Bank Leumi vs. Clal Insurance Enterprises | Bank Leumi vs. AudioCodes |
| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir vs. Shikun Binui |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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