Correlation Between Brack Capit and Bank Leumi
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Brack Capit N vs. Bank Leumi Le-Israel
Performance |
Timeline |
Brack Capit N |
Bank Leumi Le-Israel |
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.Brack Capit vs. Computer Direct | Brack Capit vs. Millennium Food Tech LP | Brack Capit vs. IBI Mutual Funds | Brack Capit vs. Sure Tech Investments LP |
Bank Leumi vs. Ratio Oil Explorations | Bank Leumi vs. Bezeq Israeli Telecommunication | Bank Leumi vs. Arena Star Group | Bank Leumi vs. ICL Israel Chemicals |
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.
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