Correlation Between Bezeq Israeli and Victory Supermarket

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

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

Diversification Opportunities for Bezeq Israeli and Victory Supermarket

0.85

Correlation Coefficient

Bezeq Israeli  Victory Supermarket

Very poor diversification

The 3 months correlation between Bezeq and Victory is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain and Bezeq Israeli 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 Bezeq Israeli Telecommunication are associated (or correlated) with Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Victory Supermarket go up and down completely randomly.

Pair Corralation between Bezeq Israeli and Victory Supermarket

Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 0.71 times more return on investment than Victory Supermarket. However, Bezeq Israeli Telecommunication is 1.41 times less risky than Victory Supermarket. It trades about 0.19 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.11 per unit of risk. If you would invest  54,910  in Bezeq Israeli Telecommunication on May 7, 2025 and sell it today you would earn a total of  8,320  from holding Bezeq Israeli Telecommunication or generate 15.15% return on investment over 90 days.

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

Bezeq Israeli Telecommunicatio  vs.  Victory Supermarket Chain

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 14 (%) 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.

Victory Supermarket Chain

Risk-Adjusted Performance

OK

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

Pair Trading with Bezeq Israeli and Victory Supermarket

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

The idea behind Bezeq Israeli Telecommunication and Victory Supermarket Chain 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.