Correlation Between Ellomay Capital and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital 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 Ellomay Capital and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Israel Discount Bank, you can compare the effects of market volatilities on Ellomay Capital 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 Ellomay Capital with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Israel Discount.
Diversification Opportunities for Ellomay Capital and Israel Discount
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ellomay and Israel is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital 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 Ellomay Capital 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 Ellomay Capital 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 Ellomay Capital i.e., Ellomay Capital and Israel Discount go up and down completely randomly.
Pair Corralation between Ellomay Capital and Israel Discount
Assuming the 90 days trading horizon Ellomay Capital is expected to under-perform the Israel Discount. But the stock apears to be less risky and, when comparing its historical volatility, Ellomay Capital is 1.25 times less risky than Israel Discount. The stock trades about -0.17 of its potential returns per unit of risk. The Israel Discount Bank is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 185,714 in Israel Discount Bank on January 24, 2024 and sell it today you would lose (2,214) from holding Israel Discount Bank or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellomay Capital vs. Israel Discount Bank
Performance |
| Timeline |
| Ellomay Capital |
| Israel Discount Bank |
Ellomay Capital and Israel Discount Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Israel Discount
The main advantage of trading using opposite Ellomay Capital and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital 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.| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Energix Renewable Energies | Ellomay Capital vs. Ellomay Capital | Ellomay Capital vs. Doral Group Renewable |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |