Correlation Between ICL Israel and Japan Airlines
Can any of the company-specific risk be diversified away by investing in both ICL Israel and Japan Airlines 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 ICL Israel and Japan Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICL Israel Chemicals and Japan Airlines Ltd, you can compare the effects of market volatilities on ICL Israel and Japan Airlines 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 ICL Israel with a short position of Japan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and Japan Airlines.
Diversification Opportunities for ICL Israel and Japan Airlines
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICL and Japan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and Japan Airlines Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Airlines and ICL 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 ICL Israel Chemicals are associated (or correlated) with Japan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Airlines has no effect on the direction of ICL Israel i.e., ICL Israel and Japan Airlines go up and down completely randomly.
Pair Corralation between ICL Israel and Japan Airlines
Considering the 90-day investment horizon ICL Israel Chemicals is expected to generate 1.96 times more return on investment than Japan Airlines. However, ICL Israel is 1.96 times more volatile than Japan Airlines Ltd. It trades about -0.02 of its potential returns per unit of risk. Japan Airlines Ltd is currently generating about -0.13 per unit of risk. If you would invest 603.00 in ICL Israel Chemicals on September 5, 2025 and sell it today you would lose (41.00) from holding ICL Israel Chemicals or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. Japan Airlines Ltd
Performance |
| Timeline |
| ICL Israel Chemicals |
| Japan Airlines |
ICL Israel and Japan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and Japan Airlines
The main advantage of trading using opposite ICL Israel and Japan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel position performs unexpectedly, Japan Airlines 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 Japan Airlines will offset losses from the drop in Japan Airlines' long position.| ICL Israel vs. US GoldMining Common | ICL Israel vs. Renesas Electronics | ICL Israel vs. Shanghai Fudan Microelectronics | ICL Israel vs. Genesis Electronics Group |
| Japan Airlines vs. ISE Chemicals | Japan Airlines vs. Four Seasons Education | Japan Airlines vs. Laureate Education | Japan Airlines vs. New Oriental Education |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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