Correlation Between Harel Index and ICL Israel
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By analyzing existing cross correlation between Harel Index Funds and ICL Israel Chemicals, you can compare the effects of market volatilities on Harel Index 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 Harel Index with a short position of ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and ICL Israel.
Diversification Opportunities for Harel Index and ICL Israel
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and ICL is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and ICL Israel Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICL Israel Chemicals and Harel Index 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 Harel Index Funds 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 Chemicals has no effect on the direction of Harel Index i.e., Harel Index and ICL Israel go up and down completely randomly.
Pair Corralation between Harel Index and ICL Israel
Assuming the 90 days trading horizon Harel Index Funds is expected to generate 0.47 times more return on investment than ICL Israel. However, Harel Index Funds is 2.11 times less risky than ICL Israel. It trades about -0.41 of its potential returns per unit of risk. ICL Israel Chemicals is currently generating about -0.27 per unit of risk. If you would invest 206,300 in Harel Index Funds on January 25, 2024 and sell it today you would lose (12,600) from holding Harel Index Funds or give up 6.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Harel Index Funds vs. ICL Israel Chemicals
Performance |
Timeline |
Harel Index Funds |
ICL Israel Chemicals |
Harel Index and ICL Israel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harel Index and ICL Israel
The main advantage of trading using opposite Harel Index and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, ICL Israel 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 ICL Israel will offset losses from the drop in ICL Israel's long position.Harel Index vs. Harel Index Funds | Harel Index vs. Harel Sal Tel Bond | Harel Index vs. Harel Index Funds | Harel Index vs. Harel Index Funds |
ICL Israel vs. Neto ME Holdings | ICL Israel vs. Aryt Industries | ICL Israel vs. Kerur Holdings | ICL Israel vs. Globrands Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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