Correlation Between Capital Point and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Capital Point and Mivtach Shamir 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 Capital Point and Mivtach Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Point and Mivtach Shamir, you can compare the effects of market volatilities on Capital Point and Mivtach Shamir 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 Capital Point with a short position of Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Point and Mivtach Shamir.
Diversification Opportunities for Capital Point and Mivtach Shamir
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Mivtach is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Capital Point and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir and Capital Point 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 Capital Point are associated (or correlated) with Mivtach Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivtach Shamir has no effect on the direction of Capital Point i.e., Capital Point and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Capital Point and Mivtach Shamir
Assuming the 90 days trading horizon Capital Point is expected to generate 0.43 times more return on investment than Mivtach Shamir. However, Capital Point is 2.31 times less risky than Mivtach Shamir. It trades about -0.1 of its potential returns per unit of risk. Mivtach Shamir is currently generating about -0.05 per unit of risk. If you would invest 4,810 in Capital Point on August 25, 2024 and sell it today you would lose (90.00) from holding Capital Point or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Point vs. Mivtach Shamir
Performance |
| Timeline |
| Capital Point |
| Mivtach Shamir |
Capital Point and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Point and Mivtach Shamir
The main advantage of trading using opposite Capital Point and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Point position performs unexpectedly, Mivtach Shamir 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 Mivtach Shamir will offset losses from the drop in Mivtach Shamir's long position.| Capital Point vs. IDI Insurance | Capital Point vs. Eldav L | Capital Point vs. Migdal Insurance | Capital Point vs. Mivtach Shamir |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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