Correlation Between Infimer and ICL Israel
Can any of the company-specific risk be diversified away by investing in both Infimer and ICL Israel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Infimer and ICL Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infimer and ICL Israel Chemicals, you can compare the effects of market volatilities on Infimer 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 Infimer with a short position of ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infimer and ICL Israel.
Diversification Opportunities for Infimer and ICL Israel
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infimer and ICL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Infimer 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 Infimer 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 Infimer 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 Infimer i.e., Infimer and ICL Israel go up and down completely randomly.
Pair Corralation between Infimer and ICL Israel
Assuming the 90 days trading horizon Infimer is expected to generate 3.85 times more return on investment than ICL Israel. However, Infimer is 3.85 times more volatile than ICL Israel Chemicals. It trades about 0.19 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 5,000 in Infimer on January 25, 2024 and sell it today you would earn a total of 1,040 from holding Infimer or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infimer vs. ICL Israel Chemicals
Performance |
| Timeline |
| Infimer |
| ICL Israel Chemicals |
Infimer and ICL Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infimer and ICL Israel
The main advantage of trading using opposite Infimer and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infimer 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.| Infimer vs. Neto ME Holdings | Infimer vs. Aryt Industries | Infimer vs. Kerur Holdings | Infimer vs. Globrands Group |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |