Correlation Between Victory Supermarket and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Victory Supermarket and Bezeq Israeli 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 Victory Supermarket and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Supermarket Chain and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Victory Supermarket and Bezeq Israeli 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 Victory Supermarket with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Supermarket and Bezeq Israeli.
Diversification Opportunities for Victory Supermarket and Bezeq Israeli
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Bezeq is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Victory Supermarket Chain and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Victory Supermarket 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 Victory Supermarket Chain are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Victory Supermarket i.e., Victory Supermarket and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Victory Supermarket and Bezeq Israeli
Assuming the 90 days trading horizon Victory Supermarket Chain is expected to generate 1.07 times more return on investment than Bezeq Israeli. However, Victory Supermarket is 1.07 times more volatile than Bezeq Israeli Telecommunication. It trades about 0.1 of its potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about -0.05 per unit of risk. If you would invest 472,469 in Victory Supermarket Chain on January 26, 2024 and sell it today you would earn a total of 13,731 from holding Victory Supermarket Chain or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Supermarket Chain vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Victory Supermarket Chain |
| Bezeq Israeli Teleco |
Victory Supermarket and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Supermarket and Bezeq Israeli
The main advantage of trading using opposite Victory Supermarket and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Supermarket position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Victory Supermarket vs. Bezeq Israeli Telecommunication | Victory Supermarket vs. Bank Hapoalim | Victory Supermarket vs. Bank Leumi Le Israel | Victory Supermarket vs. Israel Discount Bank |
| Bezeq Israeli vs. Partner | Bezeq Israeli vs. Tower Semiconductor | Bezeq Israeli vs. Israel Discount Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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