Correlation Between Tel Aviv and Harel Sal
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By analyzing existing cross correlation between Tel Aviv 35 and Harel Sal SP, you can compare the effects of market volatilities on Tel Aviv and Harel Sal 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 Tel Aviv with a short position of Harel Sal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Harel Sal.
Diversification Opportunities for Tel Aviv and Harel Sal
Very poor diversification
The 3 months correlation between Tel and Harel is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Harel Sal SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Sal SP and Tel Aviv 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 Tel Aviv 35 are associated (or correlated) with Harel Sal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Sal SP has no effect on the direction of Tel Aviv i.e., Tel Aviv and Harel Sal go up and down completely randomly.
Pair Corralation between Tel Aviv and Harel Sal
Assuming the 90 days trading horizon Tel Aviv 35 is expected to generate 0.9 times more return on investment than Harel Sal. However, Tel Aviv 35 is 1.11 times less risky than Harel Sal. It trades about 0.28 of its potential returns per unit of risk. Harel Sal SP is currently generating about 0.16 per unit of risk. If you would invest 217,424 in Tel Aviv 35 on August 29, 2024 and sell it today you would earn a total of 10,257 from holding Tel Aviv 35 or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Harel Sal SP
Performance |
| Timeline |
Tel Aviv and Harel Sal Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Harel Sal SP
Pair trading matchups for Harel Sal
Pair Trading with Tel Aviv and Harel Sal
The main advantage of trading using opposite Tel Aviv and Harel Sal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Harel Sal 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 Harel Sal will offset losses from the drop in Harel Sal's long position.| Tel Aviv vs. One Software Technologies | Tel Aviv vs. Rapac Communication Infrastructure | Tel Aviv vs. Teuza A Fairchild | Tel Aviv vs. Magic Software Enterprises |
| Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Sal Tel Bond | Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Index Funds |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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