Correlation Between Analyst IMS and MEITAV INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and MEITAV INVESTMENTS 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 Analyst IMS and MEITAV INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analyst IMS Investment and MEITAV INVESTMENTS HOUSE, you can compare the effects of market volatilities on Analyst IMS and MEITAV INVESTMENTS 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 Analyst IMS with a short position of MEITAV INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and MEITAV INVESTMENTS.
Diversification Opportunities for Analyst IMS and MEITAV INVESTMENTS
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Analyst and MEITAV is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and MEITAV INVESTMENTS HOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITAV INVESTMENTS HOUSE and Analyst IMS 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 Analyst IMS Investment are associated (or correlated) with MEITAV INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITAV INVESTMENTS HOUSE has no effect on the direction of Analyst IMS i.e., Analyst IMS and MEITAV INVESTMENTS go up and down completely randomly.
Pair Corralation between Analyst IMS and MEITAV INVESTMENTS
Assuming the 90 days trading horizon Analyst IMS is expected to generate 3.82 times less return on investment than MEITAV INVESTMENTS. But when comparing it to its historical volatility, Analyst IMS Investment is 3.43 times less risky than MEITAV INVESTMENTS. It trades about 0.48 of its potential returns per unit of risk. MEITAV INVESTMENTS HOUSE is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 199,600 in MEITAV INVESTMENTS HOUSE on September 1, 2024 and sell it today you would earn a total of 69,500 from holding MEITAV INVESTMENTS HOUSE or generate 34.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. MEITAV INVESTMENTS HOUSE
Performance |
| Timeline |
| Analyst IMS Investment |
| MEITAV INVESTMENTS HOUSE |
Analyst IMS and MEITAV INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and MEITAV INVESTMENTS
The main advantage of trading using opposite Analyst IMS and MEITAV INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, MEITAV INVESTMENTS 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 MEITAV INVESTMENTS will offset losses from the drop in MEITAV INVESTMENTS's long position.| Analyst IMS vs. TAT Technologies | Analyst IMS vs. Clal Biotechnology Industries | Analyst IMS vs. Spuntech | Analyst IMS vs. Elbit Medical Technologies |
| MEITAV INVESTMENTS vs. Nice | MEITAV INVESTMENTS vs. The Gold Bond | MEITAV INVESTMENTS vs. Bank Leumi Le Israel | MEITAV INVESTMENTS vs. ICL Israel Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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