Correlation Between My Size and ICL Israel
Can any of the company-specific risk be diversified away by investing in both My Size 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 My Size and ICL Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between My Size and ICL Israel Chemicals, you can compare the effects of market volatilities on My Size 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 My Size with a short position of ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Size and ICL Israel.
Diversification Opportunities for My Size and ICL Israel
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MYSZ and ICL is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding My Size 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 My Size 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 My Size 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 My Size i.e., My Size and ICL Israel go up and down completely randomly.
Pair Corralation between My Size and ICL Israel
Assuming the 90 days trading horizon My Size is expected to under-perform the ICL Israel. In addition to that, My Size is 3.19 times more volatile than ICL Israel Chemicals. It trades about -0.03 of its total potential returns per unit of risk. ICL Israel Chemicals is currently generating about -0.03 per unit of volatility. If you would invest 180,274 in ICL Israel Chemicals on January 17, 2024 and sell it today you would lose (5,874) from holding ICL Israel Chemicals or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.7% |
| Values | Daily Returns |
My Size vs. ICL Israel Chemicals
Performance |
| Timeline |
| My Size |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ICL Israel Chemicals |
My Size and ICL Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Size and ICL Israel
The main advantage of trading using opposite My Size and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Size 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.| My Size vs. My Size | My Size vs. Nova | My Size vs. Tower Semiconductor | My Size vs. Teva Pharmaceutical Industries |
| ICL Israel vs. Elbit Systems | ICL Israel vs. Bezeq Israeli Telecommunication | ICL Israel vs. Bank Hapoalim | ICL Israel vs. Teva Pharmaceutical Industries |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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