Correlation Between Dan Hotels and Meitav Dash
Can any of the company-specific risk be diversified away by investing in both Dan Hotels and Meitav Dash 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 Dan Hotels and Meitav Dash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dan Hotels and Meitav Dash Investments, you can compare the effects of market volatilities on Dan Hotels and Meitav Dash 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 Dan Hotels with a short position of Meitav Dash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dan Hotels and Meitav Dash.
Diversification Opportunities for Dan Hotels and Meitav Dash
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dan and Meitav is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dan Hotels and Meitav Dash Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Dash Investments and Dan Hotels 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 Dan Hotels are associated (or correlated) with Meitav Dash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Dash Investments has no effect on the direction of Dan Hotels i.e., Dan Hotels and Meitav Dash go up and down completely randomly.
Pair Corralation between Dan Hotels and Meitav Dash
Assuming the 90 days trading horizon Dan Hotels is expected to generate 4.71 times less return on investment than Meitav Dash. In addition to that, Dan Hotels is 1.32 times more volatile than Meitav Dash Investments. It trades about 0.07 of its total potential returns per unit of risk. Meitav Dash Investments is currently generating about 0.47 per unit of volatility. If you would invest 349,500 in Meitav Dash Investments on November 11, 2024 and sell it today you would earn a total of 50,700 from holding Meitav Dash Investments or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dan Hotels vs. Meitav Dash Investments
Performance |
| Timeline |
| Dan Hotels |
| Meitav Dash Investments |
Dan Hotels and Meitav Dash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dan Hotels and Meitav Dash
The main advantage of trading using opposite Dan Hotels and Meitav Dash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dan Hotels position performs unexpectedly, Meitav Dash 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 Dash will offset losses from the drop in Meitav Dash's long position.| Dan Hotels vs. Sure Tech Investments LP | Dan Hotels vs. Arad Investment Industrial | Dan Hotels vs. Computer Direct | Dan Hotels vs. One Software Technologies |
| Meitav Dash vs. IDI Insurance | Meitav Dash vs. Feat Fund Investments | Meitav Dash vs. Rapac Communication Infrastructure | Meitav Dash vs. Shagrir Group Vehicle |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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