Pair Correlation Between IPC and Israel Index

This module allows you to analyze existing cross correlation between IPC and Israel Index. You can compare the effects of market volatilities on IPC and Israel Index 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 IPC with a short position of Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of IPC and Israel Index.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 IPC  vs   Israel Index
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the Israel Index. But the index apears to be less risky and, when comparing its historical volatility, IPC is 1.09 times less risky than Israel Index. The index trades about -0.25 of its potential returns per unit of risk. The Israel Index is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  97,381  in Israel Index on October 24, 2017 and sell it today you would lose (1,576)  from holding Israel Index or give up 1.62% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between IPC and Israel Index
0.0

Parameters

Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding IPC and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index and IPC 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 IPC are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of IPC i.e. IPC and Israel Index go up and down completely randomly.
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Comparative Volatility