Correlation Between Harel Index and Nice
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By analyzing existing cross correlation between Harel Index Funds and Nice, you can compare the effects of market volatilities on Harel Index and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and Nice.
Diversification Opportunities for Harel Index and Nice
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harel and Nice is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Harel Index i.e., Harel Index and Nice go up and down completely randomly.
Pair Corralation between Harel Index and Nice
Assuming the 90 days trading horizon Harel Index is expected to generate 1.28 times less return on investment than Nice. But when comparing it to its historical volatility, Harel Index Funds is 2.4 times less risky than Nice. It trades about 0.08 of its potential returns per unit of risk. Nice is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,441,000 in Nice on January 26, 2024 and sell it today you would earn a total of 2,244,000 from holding Nice or generate 34.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Index Funds vs. Nice
Performance |
| Timeline |
| Harel Index Funds |
| Nice |
Harel Index and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Index and Nice
The main advantage of trading using opposite Harel Index and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Harel Index vs. Harel Index Funds | Harel Index vs. Harel Index Funds | Harel Index vs. Harel Index Funds | Harel Index vs. KSM Mutual Funds |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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