Correlation Between Ybox Real and Bank Hapoalim
Can any of the company-specific risk be diversified away by investing in both Ybox Real and Bank Hapoalim 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 Ybox Real and Bank Hapoalim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ybox Real Estate and Bank Hapoalim, you can compare the effects of market volatilities on Ybox Real and Bank Hapoalim 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 Ybox Real with a short position of Bank Hapoalim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ybox Real and Bank Hapoalim.
Diversification Opportunities for Ybox Real and Bank Hapoalim
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ybox and Bank is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ybox Real Estate and Bank Hapoalim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Hapoalim and Ybox 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 Ybox Real Estate are associated (or correlated) with Bank Hapoalim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Hapoalim has no effect on the direction of Ybox Real i.e., Ybox Real and Bank Hapoalim go up and down completely randomly.
Pair Corralation between Ybox Real and Bank Hapoalim
Assuming the 90 days trading horizon Ybox Real Estate is expected to generate 2.08 times more return on investment than Bank Hapoalim. However, Ybox Real is 2.08 times more volatile than Bank Hapoalim. It trades about 0.45 of its potential returns per unit of risk. Bank Hapoalim is currently generating about 0.54 per unit of risk. If you would invest 7,600 in Ybox Real Estate on August 29, 2024 and sell it today you would earn a total of 1,670 from holding Ybox Real Estate or generate 21.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ybox Real Estate vs. Bank Hapoalim
Performance |
| Timeline |
| Ybox Real Estate |
| Bank Hapoalim |
Ybox Real and Bank Hapoalim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ybox Real and Bank Hapoalim
The main advantage of trading using opposite Ybox Real and Bank Hapoalim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ybox Real position performs unexpectedly, Bank Hapoalim 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 Bank Hapoalim will offset losses from the drop in Bank Hapoalim's long position.| Ybox Real vs. Aura Investments | Ybox Real vs. Accel Solutions Group | Ybox Real vs. Tiv Taam | Ybox Real vs. Rani Zim Shopping |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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