Correlation Between Brainsway and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Brainsway 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 Brainsway and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainsway and Mivne Real Estate, you can compare the effects of market volatilities on Brainsway 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 Brainsway with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainsway and Mivne Real.
Diversification Opportunities for Brainsway and Mivne Real
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brainsway and Mivne is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Brainsway 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 Brainsway 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 Brainsway 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 Brainsway i.e., Brainsway and Mivne Real go up and down completely randomly.
Pair Corralation between Brainsway and Mivne Real
Assuming the 90 days trading horizon Brainsway is expected to generate 1.79 times more return on investment than Mivne Real. However, Brainsway is 1.79 times more volatile than Mivne Real Estate. It trades about 0.11 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 114,200 in Brainsway on August 25, 2024 and sell it today you would earn a total of 66,600 from holding Brainsway or generate 58.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.29% |
| Values | Daily Returns |
Brainsway vs. Mivne Real Estate
Performance |
| Timeline |
| Brainsway |
| Mivne Real Estate |
Brainsway and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brainsway and Mivne Real
The main advantage of trading using opposite Brainsway and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainsway 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.| Brainsway vs. Netz Hotels | Brainsway vs. Migdal Insurance | Brainsway vs. Harel Insurance Investments | Brainsway vs. Menora Miv Hld |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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