Correlation Between Alony Hetz and Migdal Insurance
Can any of the company-specific risk be diversified away by investing in both Alony Hetz 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 Alony Hetz and Migdal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alony Hetz Properties and Migdal Insurance, you can compare the effects of market volatilities on Alony Hetz 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 Alony Hetz with a short position of Migdal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Migdal Insurance.
Diversification Opportunities for Alony Hetz and Migdal Insurance
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alony and Migdal is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Migdal Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Insurance and Alony Hetz 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 Alony Hetz Properties 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 Alony Hetz i.e., Alony Hetz and Migdal Insurance go up and down completely randomly.
Pair Corralation between Alony Hetz and Migdal Insurance
Assuming the 90 days trading horizon Alony Hetz Properties is expected to under-perform the Migdal Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Alony Hetz Properties is 1.03 times less risky than Migdal Insurance. The stock trades about -0.08 of its potential returns per unit of risk. The Migdal Insurance is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 57,750 in Migdal Insurance on August 28, 2024 and sell it today you would earn a total of 6,000 from holding Migdal Insurance or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Migdal Insurance
Performance |
| Timeline |
| Alony Hetz Properties |
| Migdal Insurance |
Alony Hetz and Migdal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Migdal Insurance
The main advantage of trading using opposite Alony Hetz and Migdal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz 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.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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