Correlation Between Bank Leumi and Seach Medical
Can any of the company-specific risk be diversified away by investing in both Bank Leumi and Seach Medical 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 Bank Leumi and Seach Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Leumi Le Israel and Seach Medical Group, you can compare the effects of market volatilities on Bank Leumi and Seach Medical 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 Bank Leumi with a short position of Seach Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Leumi and Seach Medical.
Diversification Opportunities for Bank Leumi and Seach Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Seach is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bank Leumi Le Israel and Seach Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seach Medical Group and Bank Leumi 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 Bank Leumi Le Israel are associated (or correlated) with Seach Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seach Medical Group has no effect on the direction of Bank Leumi i.e., Bank Leumi and Seach Medical go up and down completely randomly.
Pair Corralation between Bank Leumi and Seach Medical
Assuming the 90 days trading horizon Bank Leumi is expected to generate 6.54 times less return on investment than Seach Medical. But when comparing it to its historical volatility, Bank Leumi Le Israel is 1.37 times less risky than Seach Medical. It trades about 0.06 of its potential returns per unit of risk. Seach Medical Group is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 28,800 in Seach Medical Group on September 25, 2024 and sell it today you would earn a total of 2,630 from holding Seach Medical Group or generate 9.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Leumi Le Israel vs. Seach Medical Group
Performance |
Timeline |
Bank Leumi Le |
Seach Medical Group |
Bank Leumi and Seach Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Leumi and Seach Medical
The main advantage of trading using opposite Bank Leumi and Seach Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Leumi position performs unexpectedly, Seach Medical 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 Seach Medical will offset losses from the drop in Seach Medical's long position.Bank Leumi vs. Bank Hapoalim | Bank Leumi vs. Israel Discount Bank | Bank Leumi vs. Mizrahi Tefahot | Bank Leumi vs. Bezeq Israeli Telecommunication |
Seach Medical vs. B Yair Building | Seach Medical vs. Amir Marketing and | Seach Medical vs. Terminal X Online | Seach Medical vs. Suny Cellular Communication |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |