Correlation Between Plaza Centers and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Plaza Centers and Bezeq Israeli 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 Plaza Centers and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Centers NV and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Plaza Centers and Bezeq Israeli 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 Plaza Centers with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Centers and Bezeq Israeli.
Diversification Opportunities for Plaza Centers and Bezeq Israeli
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plaza and Bezeq is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Centers NV and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Plaza Centers 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 Plaza Centers NV are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Plaza Centers i.e., Plaza Centers and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Plaza Centers and Bezeq Israeli
Assuming the 90 days trading horizon Plaza Centers NV is expected to under-perform the Bezeq Israeli. In addition to that, Plaza Centers is 1.51 times more volatile than Bezeq Israeli Telecommunication. It trades about -0.45 of its total potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about -0.13 per unit of volatility. If you would invest 47,940 in Bezeq Israeli Telecommunication on January 20, 2024 and sell it today you would lose (1,940) from holding Bezeq Israeli Telecommunication or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Plaza Centers NV vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Plaza Centers NV |
| Bezeq Israeli Teleco |
Plaza Centers and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Centers and Bezeq Israeli
The main advantage of trading using opposite Plaza Centers and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Centers position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Plaza Centers vs. Alony Hetz Properties | Plaza Centers vs. Amot Investments | Plaza Centers vs. Azrieli Group | Plaza Centers vs. Reit 1 |
| Bezeq Israeli vs. EN Shoham Business | Bezeq Israeli vs. Accel Solutions Group | Bezeq Israeli vs. SR Accord | Bezeq Israeli vs. Rapac Communication Infrastructure |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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