Correlation Between CIM COMMERICAL and ICL ISRAEL

By analyzing existing cross correlation between CIM COMMERICAL TRU and ICL ISRAEL CHEM you can compare the effects of market volatilities on CIM COMMERICAL and ICL ISRAEL 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 CIM COMMERICAL with a short position of ICL ISRAEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIM COMMERICAL and ICL ISRAEL.

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Can any of the company-specific risk be diversified away by investing in both CIM COMMERICAL and ICL ISRAEL at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing CIM COMMERICAL and ICL ISRAEL into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for CIM COMMERICAL and ICL ISRAEL

-0.28
Correlation
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Very good diversification

The 3 months correlation between CMCT-L and ICL ISRAEL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CIM COMMERICAL TRU and ICL ISRAEL CHEM in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ICL ISRAEL CHEM and CIM COMMERICAL 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 CIM COMMERICAL TRU are associated (or correlated) with ICL ISRAEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICL ISRAEL CHEM has no effect on the direction of CIM COMMERICAL i.e. CIM COMMERICAL and ICL ISRAEL go up and down completely randomly.

Pair Corralation between CIM COMMERICAL and ICL ISRAEL

Assuming 30 trading days horizon, CIM COMMERICAL TRU is not expected to generate positive returns. However, CIM COMMERICAL TRU is 257.54 times less risky than ICL ISRAEL. It waists most of its returns potential to compensate for thr risk taken. ICL ISRAEL is generating about -0.02 per unit of risk. If you would invest  945,000  in CIM COMMERICAL TRU on April 24, 2020 and sell it today you would earn a total of  0.00  from holding CIM COMMERICAL TRU or generate 0.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy86.84%
ValuesDaily Returns

CIM COMMERICAL TRU  vs.  ICL ISRAEL CHEM

 Performance (%) 
      Timeline 
CIM COMMERICAL TRU 
00

CIM COMMERICAL Risk-Adjusted Performance

Over the last 30 days CIM COMMERICAL TRU has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CIM COMMERICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
ICL ISRAEL CHEM 
00

ICL ISRAEL Risk-Adjusted Performance

Over the last 30 days ICL ISRAEL CHEM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ICL ISRAEL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

CIM COMMERICAL and ICL ISRAEL Volatility Contrast

 Predicted Return Density 
      Returns 
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