Correlation Between Accel Solutions and Migdal Insurance
Can any of the company-specific risk be diversified away by investing in both Accel Solutions and Migdal Insurance 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 Accel Solutions and Migdal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Solutions Group and Migdal Insurance, you can compare the effects of market volatilities on Accel Solutions and Migdal Insurance 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 Accel Solutions with a short position of Migdal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Solutions and Migdal Insurance.
Diversification Opportunities for Accel Solutions and Migdal Insurance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Accel and Migdal is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Accel Solutions Group and Migdal Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Insurance and Accel Solutions 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 Accel Solutions Group are associated (or correlated) with Migdal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Insurance has no effect on the direction of Accel Solutions i.e., Accel Solutions and Migdal Insurance go up and down completely randomly.
Pair Corralation between Accel Solutions and Migdal Insurance
Assuming the 90 days trading horizon Accel Solutions is expected to generate 1.79 times less return on investment than Migdal Insurance. In addition to that, Accel Solutions is 1.63 times more volatile than Migdal Insurance. It trades about 0.15 of its total potential returns per unit of risk. Migdal Insurance is currently generating about 0.44 per unit of volatility. If you would invest 46,000 in Migdal Insurance on September 3, 2024 and sell it today you would earn a total of 18,690 from holding Migdal Insurance or generate 40.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Solutions Group vs. Migdal Insurance
Performance |
| Timeline |
| Accel Solutions Group |
| Migdal Insurance |
Accel Solutions and Migdal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Solutions and Migdal Insurance
The main advantage of trading using opposite Accel Solutions and Migdal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Solutions position performs unexpectedly, Migdal Insurance 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 Migdal Insurance will offset losses from the drop in Migdal Insurance's long position.| Accel Solutions vs. Clal Insurance Enterprises | Accel Solutions vs. Scope Metals Group | Accel Solutions vs. Gilat Telecom Global | Accel Solutions vs. Amot Investments |
| Migdal Insurance vs. Harel Insurance Investments | Migdal Insurance vs. Clal Insurance Enterprises | Migdal Insurance vs. Bank Hapoalim | Migdal Insurance vs. Bank Leumi Le Israel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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