Correlation Between Tel Aviv and Psagot Index
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By analyzing existing cross correlation between Tel Aviv 35 and Psagot Index Funds, you can compare the effects of market volatilities on Tel Aviv and Psagot Index 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Psagot Index.
Diversification Opportunities for Tel Aviv and Psagot Index
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tel and Psagot is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Tel Aviv i.e., Tel Aviv and Psagot Index go up and down completely randomly.
Pair Corralation between Tel Aviv and Psagot Index
Assuming the 90 days trading horizon Tel Aviv 35 is expected to generate 0.45 times more return on investment than Psagot Index. However, Tel Aviv 35 is 2.23 times less risky than Psagot Index. It trades about 0.14 of its potential returns per unit of risk. Psagot Index Funds is currently generating about -0.12 per unit of risk. If you would invest 179,292 in Tel Aviv 35 on September 5, 2024 and sell it today you would earn a total of 52,260 from holding Tel Aviv 35 or generate 29.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Tel Aviv 35 vs. Psagot Index Funds
Performance |
| Timeline |
Tel Aviv and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Psagot Index Funds
Pair trading matchups for Psagot Index
Pair Trading with Tel Aviv and Psagot Index
The main advantage of trading using opposite Tel Aviv and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index's long position.| Tel Aviv vs. Veridis Environment | Tel Aviv vs. Magic Software Enterprises | Tel Aviv vs. Clal Insurance Enterprises | Tel Aviv vs. Victory Supermarket Chain |
| Psagot Index vs. Brainsway | Psagot Index vs. Mivne Real Estate | Psagot Index vs. Photomyne | Psagot Index vs. Israel Land Development |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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