Correlation Between Strauss and Bezeq Israeli

Can any of the company-specific risk be diversified away by investing in both Strauss 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 Strauss and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Strauss Group and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Strauss 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 Strauss with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strauss and Bezeq Israeli.

Diversification Opportunities for Strauss and Bezeq Israeli

0.89

Correlation Coefficient

Strauss  Bezeq Israeli

Very poor diversification

The 3 months correlation between Strauss and Bezeq is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Strauss Group 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 Strauss 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 Strauss Group 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 Strauss i.e., Strauss and Bezeq Israeli go up and down completely randomly.

Pair Corralation between Strauss and Bezeq Israeli

Assuming the 90 days trading horizon Strauss is expected to generate 2.31 times less return on investment than Bezeq Israeli. But when comparing it to its historical volatility, Strauss Group is 1.35 times less risky than Bezeq Israeli. It trades about 0.18 of its potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  50,347  in Bezeq Israeli Telecommunication on April 25, 2025 and sell it today you would earn a total of  15,913  from holding Bezeq Israeli Telecommunication or generate 31.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Strauss Group  vs.  Bezeq Israeli Telecommunicatio

Strauss Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Strauss Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Strauss sustained solid returns over the last few months and may actually be approaching a breakup point.

Bezeq Israeli Teleco

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bezeq Israeli Telecommunication are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bezeq Israeli sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Strauss and Bezeq Israeli

The main advantage of trading using opposite Strauss and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strauss 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.

The idea behind Strauss Group and Bezeq Israeli Telecommunication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.