Correlation Between Bezeq Israeli and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Mivne Real 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 Bezeq Israeli and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bezeq Israeli Telecommunication and Mivne Real Estate, you can compare the effects of market volatilities on Bezeq Israeli and Mivne Real 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 Bezeq Israeli with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Mivne Real.
Diversification Opportunities for Bezeq Israeli and Mivne Real
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bezeq and Mivne is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Mivne Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivne Real Estate and Bezeq Israeli 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 Bezeq Israeli Telecommunication are associated (or correlated) with Mivne Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivne Real Estate has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Mivne Real go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Mivne Real
Assuming the 90 days trading horizon Bezeq Israeli Telecommunication is expected to generate 0.82 times more return on investment than Mivne Real. However, Bezeq Israeli Telecommunication is 1.21 times less risky than Mivne Real. It trades about 0.32 of its potential returns per unit of risk. Mivne Real Estate is currently generating about 0.19 per unit of risk. If you would invest 41,664 in Bezeq Israeli Telecommunication on August 29, 2024 and sell it today you would earn a total of 11,086 from holding Bezeq Israeli Telecommunication or generate 26.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Mivne Real Estate
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Mivne Real Estate |
Bezeq Israeli and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Mivne Real
The main advantage of trading using opposite Bezeq Israeli and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Mivne Real 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 Mivne Real will offset losses from the drop in Mivne Real's long position.| Bezeq Israeli vs. Tower Semiconductor | Bezeq Israeli vs. Israel Discount Bank | Bezeq Israeli vs. B Communications | Bezeq Israeli vs. Holmes Place International |
| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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