Pair Correlation Between Israel Index and Straits Tms

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

Pair Volatility

Assuming 30 trading days horizon, Israel Index is expected to generate 1.47 times more return on investment than Straits Tms. However, Israel Index is 1.47 times more volatile than Straits Tms. It trades about 0.67 of its potential returns per unit of risk. Straits Tms is currently generating about 0.36 per unit of risk. If you would invest  103,009  in Israel Index on December 17, 2017 and sell it today you would earn a total of  10,502  from holding Israel Index or generate 10.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Israel Index and Straits Tms


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

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

Comparative Volatility

 Predicted Return Density