Correlation Between Psagot Index and Clal Insurance

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Psagot Index and Clal Insurance 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 Psagot Index and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Psagot Index Funds and Clal Insurance Enterprises, you can compare the effects of market volatilities on Psagot Index and Clal Insurance 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 Psagot Index with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Psagot Index and Clal Insurance.

Diversification Opportunities for Psagot Index and Clal Insurance

-0.88
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Psagot and Clal is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Psagot Index Funds and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and Psagot 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 Psagot Index Funds are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of Psagot Index i.e., Psagot Index and Clal Insurance go up and down completely randomly.

Pair Corralation between Psagot Index and Clal Insurance

Assuming the 90 days trading horizon Psagot Index Funds is expected to generate 1.06 times more return on investment than Clal Insurance. However, Psagot Index is 1.06 times more volatile than Clal Insurance Enterprises. It trades about 0.04 of its potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.01 per unit of risk. If you would invest  15,730  in Psagot Index Funds on December 29, 2023 and sell it today you would earn a total of  4,970  from holding Psagot Index Funds or generate 31.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Psagot Index Funds  vs.  Clal Insurance Enterprises

 Performance 
       Timeline  
Psagot Index Funds 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Psagot Index Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the ETF investors.
Clal Insurance Enter 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Clal Insurance Enterprises are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Clal Insurance sustained solid returns over the last few months and may actually be approaching a breakup point.

Psagot Index and Clal Insurance Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Psagot Index and Clal Insurance

The main advantage of trading using opposite Psagot Index and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Psagot Index position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.
The idea behind Psagot Index Funds and Clal Insurance Enterprises pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets