Correlation Between Intergama and Clal Insurance

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

By analyzing existing cross correlation between Intergama and Clal Insurance Enterprises, you can compare the effects of market volatilities on Intergama 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 Intergama with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intergama and Clal Insurance.

Diversification Opportunities for Intergama and Clal Insurance

0.0

Correlation Coefficient

Intergama  Clal Insurance

Pay attention - limited upside

The 3 months correlation between Intergama and Clal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intergama 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 Intergama 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 Intergama 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 Intergama i.e., Intergama and Clal Insurance go up and down completely randomly.

Pair Corralation between Intergama and Clal Insurance

If you would invest  622,000  in Clal Insurance Enterprises on February 10, 2024 and sell it today you would earn a total of  12,000  from holding Clal Insurance Enterprises or generate 1.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intergama  vs.  Clal Insurance Enterprises

Intergama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intergama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Intergama is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Clal Insurance Enter

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clal Insurance Enterprises are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Clal Insurance sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intergama and Clal Insurance

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

The idea behind Intergama and Clal Insurance Enterprises 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.