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This module allows you to analyze existing cross correlation between Israel Index and BSE. You can compare the effects of market volatilities on Israel Index and BSE 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 Israel Index with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Israel Index and BSE.
|Horizon||30 Days Login to change|
Predicted Return Density
Israel Index vs. BSE
Assuming 30 trading days horizon, Israel Index is expected to generate 13.51 times less return on investment than BSE. In addition to that, Israel Index is 1.19 times more volatile than BSE. It trades about 0.01 of its total potential returns per unit of risk. BSE is currently generating about 0.16 per unit of volatility. If you would invest 3,440,982 in BSE on November 18, 2018 and sell it today you would earn a total of 180,052 from holding BSE or generate 5.23% return on investment over 30 days.
Pair Corralation between Israel Index and BSE
|Time Period||2 Months [change]|
Diversification Opportunities for Israel Index and BSE
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Israel Index and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and Israel Index 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 Israel Index are associated (or correlated) with BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of Israel Index i.e. Israel Index and BSE go up and down completely randomly.