Correlation Between Lapidoth Heletz and Isramco Negev

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

By analyzing existing cross correlation between Lapidoth Heletz Limited Partnership and Isramco Negev 2, you can compare the effects of market volatilities on Lapidoth Heletz and Isramco Negev 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 Lapidoth Heletz with a short position of Isramco Negev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lapidoth Heletz and Isramco Negev.

Diversification Opportunities for Lapidoth Heletz and Isramco Negev

0.0

Correlation Coefficient

Lapidoth Heletz  Isramco Negev

Pay attention - limited upside

The 3 months correlation between Lapidoth and Isramco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lapidoth Heletz Limited Partne and Isramco Negev 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isramco Negev 2 and Lapidoth Heletz 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 Lapidoth Heletz Limited Partnership are associated (or correlated) with Isramco Negev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isramco Negev 2 has no effect on the direction of Lapidoth Heletz i.e., Lapidoth Heletz and Isramco Negev go up and down completely randomly.

Pair Corralation between Lapidoth Heletz and Isramco Negev

If you would invest  22,500  in Isramco Negev 2 on August 26, 2025 and sell it today you would earn a total of  430.00  from holding Isramco Negev 2 or generate 1.91% return on investment over 90 days.

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

Lapidoth Heletz Limited Partne  vs.  Isramco Negev 2

Lapidoth Heletz

Risk-Adjusted Performance

Fair

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

Isramco Negev 2

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Isramco Negev 2 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Isramco Negev is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lapidoth Heletz and Isramco Negev

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

The idea behind Lapidoth Heletz Limited Partnership and Isramco Negev 2 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.