Correlation Between YH Dimri and Mivne Real
Can any of the company-specific risk be diversified away by investing in both YH Dimri 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 YH Dimri and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YH Dimri Construction and Mivne Real Estate, you can compare the effects of market volatilities on YH Dimri 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 YH Dimri with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and Mivne Real.
Diversification Opportunities for YH Dimri and Mivne Real
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DIMRI and Mivne is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction 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 YH Dimri 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 YH Dimri Construction 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 YH Dimri i.e., YH Dimri and Mivne Real go up and down completely randomly.
Pair Corralation between YH Dimri and Mivne Real
Assuming the 90 days trading horizon YH Dimri Construction is expected to generate 0.92 times more return on investment than Mivne Real. However, YH Dimri Construction is 1.08 times less risky than Mivne Real. 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 2,557,053 in YH Dimri Construction on August 29, 2024 and sell it today you would earn a total of 889,947 from holding YH Dimri Construction or generate 34.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YH Dimri Construction vs. Mivne Real Estate
Performance |
| Timeline |
| YH Dimri Construction |
| Mivne Real Estate |
YH Dimri and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YH Dimri and Mivne Real
The main advantage of trading using opposite YH Dimri and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YH Dimri 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.| YH Dimri vs. Israel Canada | YH Dimri vs. Azrieli Group | YH Dimri vs. Delek Group | YH Dimri vs. Israel Discount Bank |
| Mivne Real vs. Israel Canada | Mivne Real vs. Azrieli Group | Mivne Real vs. Delek Group | Mivne Real vs. Israel Discount Bank |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |