Correlation Between Bank Hapoalim and Azrieli
Can any of the company-specific risk be diversified away by investing in both Bank Hapoalim and Azrieli 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 Hapoalim and Azrieli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Hapoalim and Azrieli Group, you can compare the effects of market volatilities on Bank Hapoalim and Azrieli 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 Hapoalim with a short position of Azrieli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Hapoalim and Azrieli.
Diversification Opportunities for Bank Hapoalim and Azrieli
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Azrieli is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bank Hapoalim and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli Group and Bank Hapoalim 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 Hapoalim are associated (or correlated) with Azrieli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azrieli Group has no effect on the direction of Bank Hapoalim i.e., Bank Hapoalim and Azrieli go up and down completely randomly.
Pair Corralation between Bank Hapoalim and Azrieli
Assuming the 90 days trading horizon Bank Hapoalim is expected to generate 0.96 times more return on investment than Azrieli. However, Bank Hapoalim is 1.04 times less risky than Azrieli. It trades about 0.17 of its potential returns per unit of risk. Azrieli Group is currently generating about -0.05 per unit of risk. If you would invest 442,500 in Bank Hapoalim on November 3, 2024 and sell it today you would earn a total of 17,300 from holding Bank Hapoalim or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Hapoalim vs. Azrieli Group
Performance |
| Timeline |
| Bank Hapoalim |
| Azrieli Group |
Bank Hapoalim and Azrieli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Hapoalim and Azrieli
The main advantage of trading using opposite Bank Hapoalim and Azrieli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Hapoalim position performs unexpectedly, Azrieli 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 Azrieli will offset losses from the drop in Azrieli's long position.| Bank Hapoalim vs. Bank Leumi Le Israel | Bank Hapoalim vs. Israel Discount Bank | Bank Hapoalim vs. Mizrahi Tefahot | Bank Hapoalim vs. Bezeq Israeli Telecommunication |
| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |