Correlation Between Inbar Group and Israel Discount
Can any of the company-specific risk be diversified away by investing in both Inbar Group and Israel Discount 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 Inbar Group and Israel Discount into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inbar Group Finance and Israel Discount Bank, you can compare the effects of market volatilities on Inbar Group and Israel Discount 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 Inbar Group with a short position of Israel Discount. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inbar Group and Israel Discount.
Diversification Opportunities for Inbar Group and Israel Discount
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inbar and Israel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Inbar Group Finance and Israel Discount Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Discount Bank and Inbar Group 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 Inbar Group Finance are associated (or correlated) with Israel Discount. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Discount Bank has no effect on the direction of Inbar Group i.e., Inbar Group and Israel Discount go up and down completely randomly.
Pair Corralation between Inbar Group and Israel Discount
Assuming the 90 days trading horizon Inbar Group Finance is expected to under-perform the Israel Discount. In addition to that, Inbar Group is 2.53 times more volatile than Israel Discount Bank. It trades about -0.17 of its total potential returns per unit of risk. Israel Discount Bank is currently generating about 0.07 per unit of volatility. If you would invest 181,051 in Israel Discount Bank on January 29, 2024 and sell it today you would earn a total of 8,449 from holding Israel Discount Bank or generate 4.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Inbar Group Finance vs. Israel Discount Bank
Performance |
Timeline |
Inbar Group Finance |
Israel Discount Bank |
Inbar Group and Israel Discount Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inbar Group and Israel Discount
The main advantage of trading using opposite Inbar Group and Israel Discount positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inbar Group position performs unexpectedly, Israel Discount 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 Israel Discount will offset losses from the drop in Israel Discount's long position.Inbar Group vs. Blender Financial Technologies | Inbar Group vs. Clal Insurance Enterprises | Inbar Group vs. B Communications | Inbar Group vs. Tower Semiconductor |
Israel Discount vs. Bank Leumi Le Israel | Israel Discount vs. Bank Hapoalim | Israel Discount vs. Mizrahi Tefahot | Israel Discount 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |