Correlation Between Clal Insurance and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Clal Insurance and Analyst IMS 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 Clal Insurance and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clal Insurance Enterprises and Analyst IMS Investment, you can compare the effects of market volatilities on Clal Insurance and Analyst IMS 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 Clal Insurance with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clal Insurance and Analyst IMS.
Diversification Opportunities for Clal Insurance and Analyst IMS
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clal and Analyst is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Clal Insurance Enterprises and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Clal Insurance 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 Clal Insurance Enterprises are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Clal Insurance i.e., Clal Insurance and Analyst IMS go up and down completely randomly.
Pair Corralation between Clal Insurance and Analyst IMS
Assuming the 90 days trading horizon Clal Insurance Enterprises is expected to generate 1.33 times more return on investment than Analyst IMS. However, Clal Insurance is 1.33 times more volatile than Analyst IMS Investment. It trades about 0.44 of its potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.45 per unit of risk. If you would invest 569,450 in Clal Insurance Enterprises on September 24, 2024 and sell it today you would earn a total of 280,850 from holding Clal Insurance Enterprises or generate 49.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Clal Insurance Enterprises vs. Analyst IMS Investment
Performance |
Timeline |
Clal Insurance Enter |
Analyst IMS Investment |
Clal Insurance and Analyst IMS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clal Insurance and Analyst IMS
The main advantage of trading using opposite Clal Insurance and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clal Insurance position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.Clal Insurance vs. Migdal Insurance | Clal Insurance vs. Harel Insurance Investments | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Bank Hapoalim |
Analyst IMS vs. Harel Insurance Investments | Analyst IMS vs. Clal Insurance Enterprises | Analyst IMS vs. Bank Hapoalim | Analyst IMS vs. Bank Leumi Le Israel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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