Two Equities Correlation Analysis
Specify exactly 2 symbols:
HRL-F75.TA
Add Two Equities
This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Harel Index and NYSE Composite
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harel and NYSE is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Harel Index i.e., Harel Index and NYSE Composite go up and down completely randomly.
Pair Corralation between Harel Index and NYSE Composite
Assuming the 90 days trading horizon Harel Index Funds is expected to generate 1.27 times more return on investment than NYSE Composite. However, Harel Index is 1.27 times more volatile than NYSE Composite. It trades about 0.07 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of risk. If you would invest 156,100 in Harel Index Funds on January 26, 2024 and sell it today you would earn a total of 57,300 from holding Harel Index Funds or generate 36.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 79.15% |
Values | Daily Returns |
Harel Index Funds vs. NYSE Composite
Performance |
Timeline |
Harel Index and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Harel Index Funds
Pair trading matchups for Harel Index
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Harel Index and NYSE Composite
The main advantage of trading using opposite Harel Index and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite'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 |
NYSE Composite vs. Nike Inc | NYSE Composite vs. Zoom Video Communications | NYSE Composite vs. Vera Bradley | NYSE Composite vs. Torm PLC Class |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |