Correlation Between Sano Brunos and Bank Leumi
Can any of the company-specific risk be diversified away by investing in both Sano Brunos and Bank Leumi 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 Sano Brunos and Bank Leumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sano Brunos Enterprises and Bank Leumi Le Israel, you can compare the effects of market volatilities on Sano Brunos and Bank Leumi 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 Sano Brunos with a short position of Bank Leumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sano Brunos and Bank Leumi.
Diversification Opportunities for Sano Brunos and Bank Leumi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sano and Bank is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sano Brunos Enterprises and Bank Leumi Le Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Leumi Le and Sano Brunos 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 Sano Brunos Enterprises are associated (or correlated) with Bank Leumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Leumi Le has no effect on the direction of Sano Brunos i.e., Sano Brunos and Bank Leumi go up and down completely randomly.
Pair Corralation between Sano Brunos and Bank Leumi
Assuming the 90 days trading horizon Sano Brunos Enterprises is expected to generate 0.92 times more return on investment than Bank Leumi. However, Sano Brunos Enterprises is 1.09 times less risky than Bank Leumi. It trades about 0.39 of its potential returns per unit of risk. Bank Leumi Le Israel is currently generating about -0.11 per unit of risk. If you would invest 2,979,669 in Sano Brunos Enterprises on January 20, 2024 and sell it today you would earn a total of 470,331 from holding Sano Brunos Enterprises or generate 15.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sano Brunos Enterprises vs. Bank Leumi Le Israel
Performance |
| Timeline |
| Sano Brunos Enterprises |
| Bank Leumi Le |
Sano Brunos and Bank Leumi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sano Brunos and Bank Leumi
The main advantage of trading using opposite Sano Brunos and Bank Leumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sano Brunos position performs unexpectedly, Bank Leumi 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 Bank Leumi will offset losses from the drop in Bank Leumi's long position.| Sano Brunos vs. Delek Automotive Systems | Sano Brunos vs. Globrands Group | Sano Brunos vs. Ram On Investments and | Sano Brunos vs. Scope Metals Group |
| Bank Leumi vs. Bank Hapoalim | Bank Leumi vs. Israel Discount Bank | Bank Leumi vs. Mizrahi Tefahot | Bank Leumi vs. Bezeq Israeli Telecommunication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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