Correlation Between Electra and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Electra and Bezeq Israeli 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 Electra and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electra and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Electra and Bezeq Israeli 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 Electra with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra and Bezeq Israeli.
Diversification Opportunities for Electra and Bezeq Israeli
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Electra and Bezeq is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Electra and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Electra 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 Electra are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Electra i.e., Electra and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Electra and Bezeq Israeli
Assuming the 90 days trading horizon Electra is expected to under-perform the Bezeq Israeli. In addition to that, Electra is 1.37 times more volatile than Bezeq Israeli Telecommunication. It trades about -0.31 of its total potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about -0.13 per unit of volatility. If you would invest 47,940 in Bezeq Israeli Telecommunication on January 20, 2024 and sell it today you would lose (1,940) from holding Bezeq Israeli Telecommunication or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Electra |
| Bezeq Israeli Teleco |
Electra and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra and Bezeq Israeli
The main advantage of trading using opposite Electra and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Electra vs. EN Shoham Business | Electra vs. Accel Solutions Group | Electra vs. Mivtach Shamir | Electra vs. Rani Zim Shopping |
| Bezeq Israeli vs. EN Shoham Business | Bezeq Israeli vs. Accel Solutions Group | Bezeq Israeli vs. SR Accord | Bezeq Israeli vs. Rapac Communication Infrastructure |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |