Correlation Between Delek Automotive and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Delek Automotive and Clal Insurance 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 Delek Automotive and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and Clal Insurance Enterprises, you can compare the effects of market volatilities on Delek Automotive and Clal Insurance 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 Delek Automotive with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Clal Insurance.
Diversification Opportunities for Delek Automotive and Clal Insurance
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Delek and Clal is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and Delek Automotive 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 Delek Automotive Systems are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of Delek Automotive i.e., Delek Automotive and Clal Insurance go up and down completely randomly.
Pair Corralation between Delek Automotive and Clal Insurance
Assuming the 90 days trading horizon Delek Automotive Systems is expected to generate 1.58 times more return on investment than Clal Insurance. However, Delek Automotive is 1.58 times more volatile than Clal Insurance Enterprises. It trades about -0.05 of its potential returns per unit of risk. Clal Insurance Enterprises is currently generating about -0.12 per unit of risk. If you would invest 218,300 in Delek Automotive Systems on February 5, 2024 and sell it today you would lose (5,300) from holding Delek Automotive Systems or give up 2.43% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Delek Automotive Systems vs. Clal Insurance Enterprises
Performance |
Timeline |
Delek Automotive Systems |
Clal Insurance Enter |
Delek Automotive and Clal Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Delek Automotive and Clal Insurance
The main advantage of trading using opposite Delek Automotive and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.Delek Automotive vs. Bank Leumi Le Israel | Delek Automotive vs. Mizrahi Tefahot | Delek Automotive vs. Israel Discount Bank | Delek Automotive vs. First International Bank |
Clal Insurance vs. Nice | Clal Insurance vs. Bank Leumi Le Israel | Clal Insurance vs. ICL Israel Chemicals | Clal Insurance vs. Mizrahi Tefahot |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |