Correlation Between Cellcom Israel and SJM Holdings

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

By analyzing existing cross correlation between Cellcom Israel and SJM Holdings, you can compare the effects of market volatilities on Cellcom Israel and SJM Holdings 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 SJM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellcom Israel and SJM Holdings.

Diversification Opportunities for Cellcom Israel and SJM Holdings

0.0

Correlation Coefficient

Cellcom Israel  SJM Holdings

Pay attention - limited upside

The 3 months correlation between Cellcom and SJM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cellcom Israel and SJM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SJM Holdings 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 SJM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SJM Holdings has no effect on the direction of Cellcom Israel i.e., Cellcom Israel and SJM Holdings go up and down completely randomly.

Pair Corralation between Cellcom Israel and SJM Holdings

If you would invest  27.00  in SJM Holdings on May 14, 2025 and sell it today you would earn a total of  13.00  from holding SJM Holdings or generate 48.15% return on investment over 90 days.

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

Cellcom Israel  vs.  SJM Holdings

Cellcom Israel

Risk-Adjusted Performance

Weakest

Over the last 90 days Cellcom Israel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, Cellcom Israel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SJM Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SJM Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical indicators, SJM Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellcom Israel and SJM Holdings

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

The idea behind Cellcom Israel and SJM 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.