Correlation Between Zur Shamir and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Zur Shamir and Harel Insurance 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 Zur Shamir and Harel Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zur Shamir Holdings and Harel Insurance Investments, you can compare the effects of market volatilities on Zur Shamir and Harel Insurance 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 Zur Shamir with a short position of Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zur Shamir and Harel Insurance.
Diversification Opportunities for Zur Shamir and Harel Insurance
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zur and Harel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zur Shamir Holdings and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve and Zur Shamir 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 Zur Shamir Holdings are associated (or correlated) with Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Zur Shamir i.e., Zur Shamir and Harel Insurance go up and down completely randomly.
Pair Corralation between Zur Shamir and Harel Insurance
Assuming the 90 days trading horizon Zur Shamir Holdings is expected to generate 0.79 times more return on investment than Harel Insurance. However, Zur Shamir Holdings is 1.27 times less risky than Harel Insurance. It trades about 0.36 of its potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.28 per unit of risk. If you would invest 48,150 in Zur Shamir Holdings on September 26, 2024 and sell it today you would earn a total of 36,730 from holding Zur Shamir Holdings or generate 76.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zur Shamir Holdings vs. Harel Insurance Investments
Performance |
| Timeline |
| Zur Shamir Holdings |
| Harel Insurance Inve |
Zur Shamir and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zur Shamir and Harel Insurance
The main advantage of trading using opposite Zur Shamir and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zur Shamir position performs unexpectedly, Harel Insurance 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 Insurance will offset losses from the drop in Harel Insurance's long position.| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir vs. Shikun Binui |
| Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Bank Leumi Le Israel | Harel Insurance vs. Menora Miv Hld |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |