Correlation Between Sella Real and Clal Biotechnology
Can any of the company-specific risk be diversified away by investing in both Sella Real and Clal Biotechnology 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 Sella Real and Clal Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sella Real Estate and Clal Biotechnology Industries, you can compare the effects of market volatilities on Sella Real and Clal Biotechnology 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 Sella Real with a short position of Clal Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sella Real and Clal Biotechnology.
Diversification Opportunities for Sella Real and Clal Biotechnology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sella and Clal is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sella Real Estate and Clal Biotechnology Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Biotechnology and Sella Real 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 Sella Real Estate are associated (or correlated) with Clal Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Biotechnology has no effect on the direction of Sella Real i.e., Sella Real and Clal Biotechnology go up and down completely randomly.
Pair Corralation between Sella Real and Clal Biotechnology
Assuming the 90 days trading horizon Sella Real Estate is expected to generate 0.51 times more return on investment than Clal Biotechnology. However, Sella Real Estate is 1.96 times less risky than Clal Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Clal Biotechnology Industries is currently generating about -0.01 per unit of risk. If you would invest 69,240 in Sella Real Estate on September 13, 2024 and sell it today you would earn a total of 26,580 from holding Sella Real Estate or generate 38.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sella Real Estate vs. Clal Biotechnology Industries
Performance |
| Timeline |
| Sella Real Estate |
| Clal Biotechnology |
Sella Real and Clal Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sella Real and Clal Biotechnology
The main advantage of trading using opposite Sella Real and Clal Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sella Real position performs unexpectedly, Clal Biotechnology 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 Clal Biotechnology will offset losses from the drop in Clal Biotechnology's long position.| Sella Real vs. Isras Investment | Sella Real vs. Harel Insurance Investments | Sella Real vs. B Communications | Sella Real vs. Photomyne |
| Clal Biotechnology vs. Kamada | Clal Biotechnology vs. BioLine RX | Clal Biotechnology vs. Evogene | Clal Biotechnology vs. Bezeq Israeli Telecommunication |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |