Correlation Between Ellomay Capital and Bank Leumi
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital 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 Ellomay Capital and Bank Leumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Bank Leumi Le Israel, you can compare the effects of market volatilities on Ellomay Capital 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 Ellomay Capital with a short position of Bank Leumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Bank Leumi.
Diversification Opportunities for Ellomay Capital and Bank Leumi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ellomay and Bank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital 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 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 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 has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Bank Leumi go up and down completely randomly.
Pair Corralation between Ellomay Capital and Bank Leumi
Assuming the 90 days trading horizon Ellomay Capital is expected to under-perform the Bank Leumi. But the stock apears to be less risky and, when comparing its historical volatility, Ellomay Capital is 1.22 times less risky than Bank Leumi. The stock trades about -0.17 of its potential returns per unit of risk. The Bank Leumi Le Israel is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 299,900 in Bank Leumi Le Israel on January 25, 2024 and sell it today you would lose (16,900) from holding Bank Leumi Le Israel or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellomay Capital vs. Bank Leumi Le Israel
Performance |
| Timeline |
| Ellomay Capital |
| Bank Leumi Le |
Ellomay Capital and Bank Leumi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Bank Leumi
The main advantage of trading using opposite Ellomay Capital and Bank Leumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital 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.| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Energix Renewable Energies | Ellomay Capital vs. Ellomay Capital | Ellomay Capital vs. Doral Group Renewable |
| Bank Leumi vs. Bank Hapoalim | Bank Leumi vs. Israel Discount Bank | Bank Leumi vs. Mizrahi Tefahot | Bank Leumi 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |