Correlation Between Feat Fund and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Multi Retail 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 Feat Fund and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Multi Retail Group, you can compare the effects of market volatilities on Feat Fund and Multi Retail 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 Feat Fund with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Multi Retail.
Diversification Opportunities for Feat Fund and Multi Retail
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Feat and Multi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group and Feat Fund 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 Feat Fund Investments are associated (or correlated) with Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Feat Fund i.e., Feat Fund and Multi Retail go up and down completely randomly.
Pair Corralation between Feat Fund and Multi Retail
Assuming the 90 days trading horizon Feat Fund Investments is expected to under-perform the Multi Retail. But the stock apears to be less risky and, when comparing its historical volatility, Feat Fund Investments is 2.99 times less risky than Multi Retail. The stock trades about -0.01 of its potential returns per unit of risk. The Multi Retail Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 101,400 in Multi Retail Group on September 3, 2024 and sell it today you would earn a total of 3,600 from holding Multi Retail Group or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Multi Retail Group
Performance |
| Timeline |
| Feat Fund Investments |
| Multi Retail Group |
Feat Fund and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Multi Retail
The main advantage of trading using opposite Feat Fund and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Multi Retail 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 Multi Retail will offset losses from the drop in Multi Retail's long position.| Feat Fund vs. Bezeq Israeli Telecommunication | Feat Fund vs. Arad Investment Industrial | Feat Fund vs. Hiron Trade Investments Industrial | Feat Fund vs. Imed Infinity Medical Limited |
| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Israel Land Development |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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