Correlation Between Brill Shoe and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Brill Shoe 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 Brill Shoe and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brill Shoe Industries and Israel Discount Bank, you can compare the effects of market volatilities on Brill Shoe 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 Brill Shoe with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brill Shoe and Israel Discount.
Diversification Opportunities for Brill Shoe and Israel Discount
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brill and Israel is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Brill Shoe Industries 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 Brill Shoe 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 Brill Shoe Industries 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 Brill Shoe i.e., Brill Shoe and Israel Discount go up and down completely randomly.
Pair Corralation between Brill Shoe and Israel Discount
Assuming the 90 days trading horizon Brill Shoe Industries is expected to under-perform the Israel Discount. In addition to that, Brill Shoe is 1.99 times more volatile than Israel Discount Bank. It trades about -0.01 of its total potential returns per unit of risk. Israel Discount Bank is currently generating about 0.02 per unit of volatility. If you would invest 180,525 in Israel Discount Bank on January 24, 2024 and sell it today you would earn a total of 2,975 from holding Israel Discount Bank or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brill Shoe Industries vs. Israel Discount Bank
Performance |
| Timeline |
| Brill Shoe Industries |
| Israel Discount Bank |
Brill Shoe and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brill Shoe and Israel Discount
The main advantage of trading using opposite Brill Shoe and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brill Shoe 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.| Brill Shoe vs. Clal Insurance Enterprises | Brill Shoe vs. Israel Discount Bank | Brill Shoe vs. Bezeq Israeli Telecommunication | Brill Shoe vs. Alony Hetz Properties |
| Israel Discount vs. Bank Leumi Le Israel | Israel Discount vs. Bank Hapoalim | Israel Discount vs. Mizrahi Tefahot | Israel Discount vs. Bezeq Israeli Telecommunication |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |