Two Equities Correlation Analysis
Specify exactly 2 symbols:
ILDA.TA
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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 Israel Land and NYSE Composite
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Israel and NYSE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Israel Land and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Israel Land 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 The Israel Land 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 Israel Land i.e., Israel Land and NYSE Composite go up and down completely randomly.
Pair Corralation between Israel Land and NYSE Composite
Assuming the 90 days trading horizon The Israel Land is expected to generate 5.07 times more return on investment than NYSE Composite. However, Israel Land is 5.07 times more volatile than NYSE Composite. It trades about 0.24 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 68,200 in The Israel Land on January 26, 2024 and sell it today you would earn a total of 9,480 from holding The Israel Land or generate 13.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 76.19% |
Values | Daily Returns |
The Israel Land vs. NYSE Composite
Performance |
Timeline |
Israel Land and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
The Israel Land
Pair trading matchups for Israel Land
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Israel Land and NYSE Composite
The main advantage of trading using opposite Israel Land and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Land 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.Israel Land vs. Migdal Insurance | Israel Land vs. Amir Marketing and | Israel Land vs. Menif Financial Services | Israel Land vs. Harel Insurance Investments |
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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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