Correlation Between Salomon A and Bezeq Israeli

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Can any of the company-specific risk be diversified away by investing in both Salomon A 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 Salomon A and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salomon A Angel and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Salomon A 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 Salomon A with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salomon A and Bezeq Israeli.

Diversification Opportunities for Salomon A and Bezeq Israeli

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Salomon and Bezeq is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salomon A Angel 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 Salomon A 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 Salomon A Angel 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 Salomon A i.e., Salomon A and Bezeq Israeli go up and down completely randomly.

Pair Corralation between Salomon A and Bezeq Israeli

If you would invest (100.00) in Salomon A Angel on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Salomon A Angel or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Salomon A Angel  vs.  Bezeq Israeli Telecommunicatio

 Performance 
       Timeline  
Salomon A Angel 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Salomon A Angel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Salomon A is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Bezeq Israeli Teleco 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Bezeq Israeli Telecommunication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Bezeq Israeli is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Salomon A and Bezeq Israeli Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Salomon A and Bezeq Israeli

The main advantage of trading using opposite Salomon A and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salomon A 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.
The idea behind Salomon A Angel and Bezeq Israeli Telecommunication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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