Correlation Between Zur Shamir and Bank Hapoalim
Can any of the company-specific risk be diversified away by investing in both Zur Shamir 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 Zur Shamir and Bank Hapoalim 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 Bank Hapoalim, you can compare the effects of market volatilities on Zur Shamir 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 Zur Shamir with a short position of Bank Hapoalim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zur Shamir and Bank Hapoalim.
Diversification Opportunities for Zur Shamir and Bank Hapoalim
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zur and Bank is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zur Shamir Holdings and Bank Hapoalim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Hapoalim 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 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 Zur Shamir i.e., Zur Shamir and Bank Hapoalim go up and down completely randomly.
Pair Corralation between Zur Shamir and Bank Hapoalim
Assuming the 90 days trading horizon Zur Shamir Holdings is expected to generate 1.8 times more return on investment than Bank Hapoalim. However, Zur Shamir is 1.8 times more volatile than Bank Hapoalim. It trades about 0.29 of its potential returns per unit of risk. Bank Hapoalim is currently generating about 0.24 per unit of risk. If you would invest 66,400 in Zur Shamir Holdings on September 4, 2024 and sell it today you would earn a total of 7,700 from holding Zur Shamir Holdings or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
Zur Shamir Holdings vs. Bank Hapoalim
Performance |
| Timeline |
| Zur Shamir Holdings |
| Bank Hapoalim |
Zur Shamir and Bank Hapoalim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zur Shamir and Bank Hapoalim
The main advantage of trading using opposite Zur Shamir and Bank Hapoalim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zur Shamir 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.| Zur Shamir vs. IDI Insurance | Zur Shamir vs. Adgar Investments and | Zur Shamir vs. Harel Insurance Investments | Zur Shamir vs. Shikun Binui |
| Bank Hapoalim vs. Israel Discount Bank | Bank Hapoalim vs. First International Bank | Bank Hapoalim vs. Elbit Systems |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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