Correlation Between Poalim Ibi and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Poalim Ibi and Dow Jones 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 Poalim Ibi and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poalim Ibi and Dow Jones Industrial, you can compare the effects of market volatilities on Poalim Ibi and Dow Jones 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 Poalim Ibi with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poalim Ibi and Dow Jones.
Diversification Opportunities for Poalim Ibi and Dow Jones
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Poalim and Dow is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Poalim Ibi and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Poalim Ibi 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 Poalim Ibi are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Poalim Ibi i.e., Poalim Ibi and Dow Jones go up and down completely randomly.
Pair Corralation between Poalim Ibi and Dow Jones
Assuming the 90 days trading horizon Poalim Ibi is expected to generate 3.4 times more return on investment than Dow Jones. However, Poalim Ibi is 3.4 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 55,000 in Poalim Ibi on November 28, 2024 and sell it today you would earn a total of 36,820 from holding Poalim Ibi or generate 66.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.59% |
| Values | Daily Returns |
Poalim Ibi vs. Dow Jones Industrial
Performance |
| Timeline |
Poalim Ibi and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Poalim Ibi
Pair trading matchups for Poalim Ibi
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Poalim Ibi and Dow Jones
The main advantage of trading using opposite Poalim Ibi and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poalim Ibi position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Poalim Ibi vs. Payment Financial Technologies | Poalim Ibi vs. Shagrir Group Vehicle | Poalim Ibi vs. Batm Advanced Communications | Poalim Ibi vs. First International Bank |
| Dow Jones vs. Gladstone Investment | Dow Jones vs. BW Offshore Limited | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. Aperture Health |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |