Correlation Between Cellcom Israel and Argo Properties
Can any of the company-specific risk be diversified away by investing in both Cellcom Israel and Argo Properties 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 Cellcom Israel and Argo Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellcom Israel and Argo Properties NV, you can compare the effects of market volatilities on Cellcom Israel and Argo Properties 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 Cellcom Israel with a short position of Argo Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellcom Israel and Argo Properties.
Diversification Opportunities for Cellcom Israel and Argo Properties
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellcom and Argo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cellcom Israel and Argo Properties NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Properties NV and Cellcom Israel 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 Cellcom Israel are associated (or correlated) with Argo Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Properties NV has no effect on the direction of Cellcom Israel i.e., Cellcom Israel and Argo Properties go up and down completely randomly.
Pair Corralation between Cellcom Israel and Argo Properties
Assuming the 90 days trading horizon Cellcom Israel is expected to generate 1.09 times more return on investment than Argo Properties. However, Cellcom Israel is 1.09 times more volatile than Argo Properties NV. It trades about 0.1 of its potential returns per unit of risk. Argo Properties NV is currently generating about 0.03 per unit of risk. If you would invest 206,000 in Cellcom Israel on December 29, 2024 and sell it today you would earn a total of 25,600 from holding Cellcom Israel or generate 12.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cellcom Israel vs. Argo Properties NV
Performance |
Timeline |
Cellcom Israel |
Argo Properties NV |
Cellcom Israel and Argo Properties Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cellcom Israel and Argo Properties
The main advantage of trading using opposite Cellcom Israel and Argo Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellcom Israel position performs unexpectedly, Argo Properties 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 Argo Properties will offset losses from the drop in Argo Properties' long position.Cellcom Israel vs. Amir Marketing and | Cellcom Israel vs. One Software Technologies | Cellcom Israel vs. Multi Retail Group | Cellcom Israel vs. Blender Financial Technologies |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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