Correlation Between Psagot Index and Nice
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By analyzing existing cross correlation between Psagot Index Funds and Nice, you can compare the effects of market volatilities on Psagot Index and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Psagot Index and Nice.
Diversification Opportunities for Psagot Index and Nice
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Psagot and Nice is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Psagot Index Funds and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Psagot Index i.e., Psagot Index and Nice go up and down completely randomly.
Pair Corralation between Psagot Index and Nice
Assuming the 90 days trading horizon Psagot Index Funds is expected to generate 1.07 times more return on investment than Nice. However, Psagot Index is 1.07 times more volatile than Nice. It trades about 0.45 of its potential returns per unit of risk. Nice is currently generating about -0.39 per unit of risk. If you would invest 20,660 in Psagot Index Funds on January 25, 2024 and sell it today you would earn a total of 2,680 from holding Psagot Index Funds or generate 12.97% 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. Nice
Performance |
| Timeline |
| Psagot Index Funds |
| Nice |
Psagot Index and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Psagot Index and Nice
The main advantage of trading using opposite Psagot Index and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Psagot Index position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice'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 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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