Correlation Between Harel Insurance and Foresight Autonomous

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

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

Diversification Opportunities for Harel Insurance and Foresight Autonomous

-0.76

Correlation Coefficient

Harel Insurance  Foresight Autonomous

Pay attention - limited upside

The 3 months correlation between Harel and Foresight is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous and Harel Insurance 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 Harel Insurance Investments are associated (or correlated) with Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of Harel Insurance i.e., Harel Insurance and Foresight Autonomous go up and down completely randomly.

Pair Corralation between Harel Insurance and Foresight Autonomous

Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 1.01 times more return on investment than Foresight Autonomous. However, Harel Insurance is 1.01 times more volatile than Foresight Autonomous Holdings. It trades about 0.45 of its potential returns per unit of risk. Foresight Autonomous Holdings is currently generating about -0.15 per unit of risk. If you would invest  337,612  in Harel Insurance Investments on September 13, 2024 and sell it today you would earn a total of  145,388  from holding Harel Insurance Investments or generate 43.06% return on investment over 90 days.

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

Harel Insurance Investments  vs.  Foresight Autonomous Holdings

Harel Insurance Inve

Risk-Adjusted Performance

35 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Harel Insurance Investments are ranked lower than 35 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Harel Insurance sustained solid returns over the last few months and may actually be approaching a breakup point.

Foresight Autonomous

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Foresight Autonomous Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Harel Insurance and Foresight Autonomous

The main advantage of trading using opposite Harel Insurance and Foresight Autonomous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Foresight Autonomous 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 Foresight Autonomous will offset losses from the drop in Foresight Autonomous' long position.

The idea behind Harel Insurance Investments and Foresight Autonomous Holdings 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..