Correlation Between Psagot Index and Brainsway
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By analyzing existing cross correlation between Psagot Index Funds and Brainsway, you can compare the effects of market volatilities on Psagot Index and Brainsway 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 Psagot Index with a short position of Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Psagot Index and Brainsway.
Diversification Opportunities for Psagot Index and Brainsway
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Psagot and Brainsway is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Psagot Index Funds and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway and Psagot Index 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 Psagot Index Funds are associated (or correlated) with Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of Psagot Index i.e., Psagot Index and Brainsway go up and down completely randomly.
Pair Corralation between Psagot Index and Brainsway
Assuming the 90 days trading horizon Psagot Index Funds is expected to generate 0.33 times more return on investment than Brainsway. However, Psagot Index Funds is 3.06 times less risky than Brainsway. It trades about -0.2 of its potential returns per unit of risk. Brainsway is currently generating about -0.17 per unit of risk. If you would invest 450,500 in Psagot Index Funds on September 12, 2024 and sell it today you would lose (17,700) from holding Psagot Index Funds or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Psagot Index Funds vs. Brainsway
Performance |
| Timeline |
| Psagot Index Funds |
| Brainsway |
Psagot Index and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Psagot Index and Brainsway
The main advantage of trading using opposite Psagot Index and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Psagot Index position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway's long position.| Psagot Index vs. Mivne Real Estate | Psagot Index vs. Photomyne | Psagot Index vs. Israel Land Development | Psagot Index vs. Bezeq Israeli Telecommunication |
| Brainsway vs. Sure Tech Investments LP | Brainsway vs. Technoplus Ventures | Brainsway vs. Rapac Communication Infrastructure | Brainsway vs. Batm Advanced Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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