Correlation Between Emilia Devel and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Emilia Devel 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 Emilia Devel and Mivtach Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emilia Devel and Mivtach Shamir, you can compare the effects of market volatilities on Emilia Devel 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 Emilia Devel with a short position of Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emilia Devel and Mivtach Shamir.
Diversification Opportunities for Emilia Devel and Mivtach Shamir
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emilia and Mivtach is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Emilia Devel and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir and Emilia Devel 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 Emilia Devel 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 Emilia Devel i.e., Emilia Devel and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Emilia Devel and Mivtach Shamir
Assuming the 90 days trading horizon Emilia Devel is expected to generate 4.93 times less return on investment than Mivtach Shamir. But when comparing it to its historical volatility, Emilia Devel is 1.14 times less risky than Mivtach Shamir. It trades about 0.03 of its potential returns per unit of risk. Mivtach Shamir is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,053,424 in Mivtach Shamir on August 29, 2024 and sell it today you would earn a total of 746,576 from holding Mivtach Shamir or generate 70.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.36% |
| Values | Daily Returns |
Emilia Devel vs. Mivtach Shamir
Performance |
| Timeline |
| Emilia Devel |
| Mivtach Shamir |
Emilia Devel and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emilia Devel and Mivtach Shamir
The main advantage of trading using opposite Emilia Devel and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emilia Devel 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.| Emilia Devel vs. IBI Inv House | Emilia Devel vs. The Phoenix Holdings | Emilia Devel vs. Eldav L | Emilia Devel vs. Cohen Dev |
| Mivtach Shamir vs. Elbit Systems | Mivtach Shamir vs. Discount Investment Corp | Mivtach Shamir vs. Clal Insurance Enterprises | Mivtach Shamir vs. AudioCodes |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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