Correlation Between Big Shopping and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Big Shopping 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 Big Shopping and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Shopping Centers and Mivne Real Estate, you can compare the effects of market volatilities on Big Shopping 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 Big Shopping with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Shopping and Mivne Real.
Diversification Opportunities for Big Shopping and Mivne Real
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Big and Mivne is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Big Shopping Centers 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 Big Shopping 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 Big Shopping Centers 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 Big Shopping i.e., Big Shopping and Mivne Real go up and down completely randomly.
Pair Corralation between Big Shopping and Mivne Real
Assuming the 90 days trading horizon Big Shopping Centers is expected to generate 0.89 times more return on investment than Mivne Real. However, Big Shopping Centers is 1.13 times less risky than Mivne Real. It trades about 0.06 of its potential returns per unit of risk. Mivne Real Estate is currently generating about 0.04 per unit of risk. If you would invest 3,929,000 in Big Shopping Centers on August 25, 2024 and sell it today you would earn a total of 536,000 from holding Big Shopping Centers or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Shopping Centers vs. Mivne Real Estate
Performance |
| Timeline |
| Big Shopping Centers |
| Mivne Real Estate |
Big Shopping and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Shopping and Mivne Real
The main advantage of trading using opposite Big Shopping and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Shopping 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.| Big Shopping vs. Azrieli Group | Big Shopping vs. Melisron | Big Shopping vs. Amot Investments | Big Shopping vs. Alony Hetz Properties |
| Mivne Real vs. Rapac Communication Infrastructure | Mivne Real vs. Willy Food | Mivne Real vs. Bio Meat Foodtech | Mivne Real vs. Rimon Consulting Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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