Correlation Between Psagot Index and Clal Insurance
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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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Psagot Index Funds vs. Clal Insurance Enterprises
Performance |
Timeline |
Psagot Index Funds |
Clal Insurance Enter |
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.Psagot Index vs. Psagot ETF 00 | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
Clal Insurance vs. Ratio Oil Explorations | Clal Insurance vs. Bezeq Israeli Telecommunication | Clal Insurance vs. Arena Star Group | Clal Insurance vs. ICL Israel Chemicals |
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.
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