This module allows you to analyze existing cross correlation between Israel Index and OMXVGI. You can compare the effects of market volatilities on Israel Index and OMXVGI 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 OMXVGI. See also your portfolio center. Please also check ongoing floating volatility patterns of Israel Index and OMXVGI.
|Horizon||30 Days Login to change|
Predicted Return Density
Israel Index vs. OMXVGI
Assuming 30 trading days horizon, Israel Index is expected to generate 3.88 times more return on investment than OMXVGI. However, Israel Index is 3.88 times more volatile than OMXVGI. It trades about 0.09 of its potential returns per unit of risk. OMXVGI is currently generating about 0.13 per unit of risk. If you would invest 99,371 in Israel Index on September 15, 2019 and sell it today you would earn a total of 3,109 from holding Israel Index or generate 3.13% return on investment over 30 days.
Pair Corralation between Israel Index and OMXVGI
|Time Period||3 Months [change]|
Diversification Opportunities for Israel Index and OMXVGI
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Israel Index and OMXVGI in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMXVGI 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 OMXVGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMXVGI has no effect on the direction of Israel Index i.e. Israel Index and OMXVGI go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.