Correlation Between Mobile Max and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Mobile Max and Clal Insurance 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 Mobile Max and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Max M and Clal Insurance Enterprises, you can compare the effects of market volatilities on Mobile Max and Clal Insurance 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 Mobile Max with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Clal Insurance.
Diversification Opportunities for Mobile Max and Clal Insurance
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mobile and Clal is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and Mobile Max 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 Mobile Max M are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of Mobile Max i.e., Mobile Max and Clal Insurance go up and down completely randomly.
Pair Corralation between Mobile Max and Clal Insurance
Assuming the 90 days trading horizon Mobile Max M is expected to under-perform the Clal Insurance. In addition to that, Mobile Max is 1.14 times more volatile than Clal Insurance Enterprises. It trades about -0.56 of its total potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.35 per unit of volatility. If you would invest 672,000 in Clal Insurance Enterprises on August 30, 2024 and sell it today you would earn a total of 88,000 from holding Clal Insurance Enterprises or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Max M vs. Clal Insurance Enterprises
Performance |
| Timeline |
| Mobile Max M |
| Clal Insurance Enter |
Mobile Max and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Max and Clal Insurance
The main advantage of trading using opposite Mobile Max and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Max position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.| Mobile Max vs. B Communications | Mobile Max vs. Nova | Mobile Max vs. Petrochemical | Mobile Max vs. Israel Opportunity |
| Clal Insurance vs. Elbit Systems | Clal Insurance vs. Discount Investment Corp | Clal Insurance vs. AudioCodes | Clal Insurance vs. Shufersal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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