Correlation Between Bank Hapoalim and Ybox Real
Can any of the company-specific risk be diversified away by investing in both Bank Hapoalim and Ybox Real 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 Ybox Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Hapoalim and Ybox Real Estate, you can compare the effects of market volatilities on Bank Hapoalim and Ybox Real 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 Ybox Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Hapoalim and Ybox Real.
Diversification Opportunities for Bank Hapoalim and Ybox Real
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Ybox is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bank Hapoalim and Ybox Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ybox Real Estate 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 Ybox Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ybox Real Estate has no effect on the direction of Bank Hapoalim i.e., Bank Hapoalim and Ybox Real go up and down completely randomly.
Pair Corralation between Bank Hapoalim and Ybox Real
Assuming the 90 days trading horizon Bank Hapoalim is expected to generate 0.57 times more return on investment than Ybox Real. However, Bank Hapoalim is 1.75 times less risky than Ybox Real. It trades about 0.17 of its potential returns per unit of risk. Ybox Real Estate is currently generating about 0.05 per unit of risk. If you would invest 294,404 in Bank Hapoalim on August 29, 2024 and sell it today you would earn a total of 135,596 from holding Bank Hapoalim or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Hapoalim vs. Ybox Real Estate
Performance |
| Timeline |
| Bank Hapoalim |
| Ybox Real Estate |
Bank Hapoalim and Ybox Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Hapoalim and Ybox Real
The main advantage of trading using opposite Bank Hapoalim and Ybox Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Hapoalim position performs unexpectedly, Ybox Real 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 Ybox Real will offset losses from the drop in Ybox Real'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 |
| Ybox Real vs. Aura Investments | Ybox Real vs. Accel Solutions Group | Ybox Real vs. Tiv Taam | Ybox Real vs. Rani Zim Shopping |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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