Correlation Between Cohen Dev and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Cohen Dev and Israel Discount 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 Cohen Dev and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Dev and Israel Discount Bank, you can compare the effects of market volatilities on Cohen Dev and Israel Discount 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 Cohen Dev with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Dev and Israel Discount.
Diversification Opportunities for Cohen Dev and Israel Discount
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and Israel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Dev and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank and Cohen Dev 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 Cohen Dev are associated (or correlated) with Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Cohen Dev i.e., Cohen Dev and Israel Discount go up and down completely randomly.
Pair Corralation between Cohen Dev and Israel Discount
Assuming the 90 days trading horizon Cohen Dev is expected to under-perform the Israel Discount. But the stock apears to be less risky and, when comparing its historical volatility, Cohen Dev is 1.3 times less risky than Israel Discount. The stock trades about 0.0 of its potential returns per unit of risk. The Israel Discount Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 188,000 in Israel Discount Bank on January 26, 2024 and sell it today you would earn a total of 3,700 from holding Israel Discount Bank or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Dev vs. Israel Discount Bank
Performance |
| Timeline |
| Cohen Dev |
| Israel Discount Bank |
Cohen Dev and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Dev and Israel Discount
The main advantage of trading using opposite Cohen Dev and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Dev position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.| Cohen Dev vs. Atreyu Capital Markets | Cohen Dev vs. IBI Inv House | Cohen Dev vs. Delek Automotive Systems | Cohen Dev vs. Scope Metals Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |