Correlation Between Intelicanna and ICL Israel
Can any of the company-specific risk be diversified away by investing in both Intelicanna and ICL Israel 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 Intelicanna and ICL Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelicanna and ICL Israel Chemicals, you can compare the effects of market volatilities on Intelicanna and ICL Israel 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 Intelicanna with a short position of ICL Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelicanna and ICL Israel.
Diversification Opportunities for Intelicanna and ICL Israel
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intelicanna and ICL is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Intelicanna and ICL Israel Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICL Israel Chemicals and Intelicanna 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 Intelicanna are associated (or correlated) with ICL Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICL Israel Chemicals has no effect on the direction of Intelicanna i.e., Intelicanna and ICL Israel go up and down completely randomly.
Pair Corralation between Intelicanna and ICL Israel
Assuming the 90 days trading horizon Intelicanna is expected to under-perform the ICL Israel. In addition to that, Intelicanna is 2.57 times more volatile than ICL Israel Chemicals. It trades about -0.47 of its total potential returns per unit of risk. ICL Israel Chemicals is currently generating about -0.27 per unit of volatility. If you would invest 193,100 in ICL Israel Chemicals on January 25, 2024 and sell it today you would lose (16,600) from holding ICL Israel Chemicals or give up 8.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intelicanna vs. ICL Israel Chemicals
Performance |
Timeline |
Intelicanna |
ICL Israel Chemicals |
Intelicanna and ICL Israel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intelicanna and ICL Israel
The main advantage of trading using opposite Intelicanna and ICL Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelicanna position performs unexpectedly, ICL Israel 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 ICL Israel will offset losses from the drop in ICL Israel's long position.Intelicanna vs. Alony Hetz Properties | Intelicanna vs. Melisron | Intelicanna vs. Shufersal | Intelicanna vs. Israel Discount Bank |
ICL Israel vs. Neto ME Holdings | ICL Israel vs. Aryt Industries | ICL Israel vs. Kerur Holdings | ICL Israel vs. Globrands Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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