Correlation Between Rami Levi and Hamat
Can any of the company-specific risk be diversified away by investing in both Rami Levi and Hamat 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 Rami Levi and Hamat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rami Levi and Hamat Group, you can compare the effects of market volatilities on Rami Levi and Hamat 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 Rami Levi with a short position of Hamat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rami Levi and Hamat.
Diversification Opportunities for Rami Levi and Hamat
Almost no diversification
The 3 months correlation between Rami and Hamat is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Rami Levi and Hamat Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamat Group and Rami Levi 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 Rami Levi are associated (or correlated) with Hamat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamat Group has no effect on the direction of Rami Levi i.e., Rami Levi and Hamat go up and down completely randomly.
Pair Corralation between Rami Levi and Hamat
Assuming the 90 days trading horizon Rami Levi is expected to generate 0.38 times more return on investment than Hamat. However, Rami Levi is 2.63 times less risky than Hamat. It trades about 0.34 of its potential returns per unit of risk. Hamat Group is currently generating about -0.08 per unit of risk. If you would invest 2,450,000 in Rami Levi on November 3, 2024 and sell it today you would earn a total of 230,000 from holding Rami Levi or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rami Levi vs. Hamat Group
Performance |
| Timeline |
| Rami Levi |
| Hamat Group |
Rami Levi and Hamat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rami Levi and Hamat
The main advantage of trading using opposite Rami Levi and Hamat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rami Levi position performs unexpectedly, Hamat 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 Hamat will offset losses from the drop in Hamat's long position.| Rami Levi vs. Shufersal | Rami Levi vs. Bank Leumi Le Israel | Rami Levi vs. Bezeq Israeli Telecommunication | Rami Levi vs. Bank Hapoalim |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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