Correlation Between Brack Capit and Bank Leumi

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Brack Capit and Bank Leumi 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 Brack Capit and Bank Leumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brack Capit N and Bank Leumi Le Israel, you can compare the effects of market volatilities on Brack Capit and Bank Leumi 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 Brack Capit with a short position of Bank Leumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brack Capit and Bank Leumi.

Diversification Opportunities for Brack Capit and Bank Leumi

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Brack and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Brack Capit N and Bank Leumi Le-Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Leumi Le-Israel and Brack Capit 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 Brack Capit N are associated (or correlated) with Bank Leumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Leumi Le-Israel has no effect on the direction of Brack Capit i.e., Brack Capit and Bank Leumi go up and down completely randomly.

Pair Corralation between Brack Capit and Bank Leumi

Assuming the 90 days trading horizon Brack Capit N is expected to generate 2.79 times more return on investment than Bank Leumi. However, Brack Capit is 2.79 times more volatile than Bank Leumi Le Israel. It trades about 0.34 of its potential returns per unit of risk. Bank Leumi Le Israel is currently generating about 0.24 per unit of risk. If you would invest  1,870,000  in Brack Capit N on December 29, 2023 and sell it today you would earn a total of  451,000  from holding Brack Capit N or generate 24.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Brack Capit N  vs.  Bank Leumi Le-Israel

 Performance 
       Timeline  
Brack Capit N 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Brack Capit N has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Bank Leumi Le-Israel 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Bank Leumi Le Israel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Bank Leumi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Brack Capit and Bank Leumi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Brack Capit and Bank Leumi

The main advantage of trading using opposite Brack Capit and Bank Leumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brack Capit position performs unexpectedly, Bank Leumi 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 Bank Leumi will offset losses from the drop in Bank Leumi's long position.
The idea behind Brack Capit N and Bank Leumi Le Israel 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Fundamental Analysis
View fundamental data based on most recent published financial statements
Content Syndication
Quickly integrate customizable finance content to your own investment portal
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing