Correlation Between Harel Index and International Business
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By analyzing existing cross correlation between Harel Index Funds and International Business Machines, you can compare the effects of market volatilities on Harel Index and International Business 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 International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and International Business.
Diversification Opportunities for Harel Index and International Business
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harel and International is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Harel Index i.e., Harel Index and International Business go up and down completely randomly.
Pair Corralation between Harel Index and International Business
Assuming the 90 days trading horizon Harel Index Funds is expected to generate 1.31 times more return on investment than International Business. However, Harel Index is 1.31 times more volatile than International Business Machines. It trades about 0.12 of its potential returns per unit of risk. International Business Machines is currently generating about -0.12 per unit of risk. If you would invest 208,900 in Harel Index Funds on January 26, 2024 and sell it today you would earn a total of 4,500 from holding Harel Index Funds or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Harel Index Funds vs. International Business Machine
Performance |
| Timeline |
| Harel Index Funds |
| International Business |
Harel Index and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Index and International Business
The main advantage of trading using opposite Harel Index and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' 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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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