Correlation Between Fattal 1998 and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Fattal 1998 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 Fattal 1998 and Mivtach Shamir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fattal 1998 Holdings and Mivtach Shamir, you can compare the effects of market volatilities on Fattal 1998 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 Fattal 1998 with a short position of Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fattal 1998 and Mivtach Shamir.
Diversification Opportunities for Fattal 1998 and Mivtach Shamir
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fattal and Mivtach is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fattal 1998 Holdings and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir and Fattal 1998 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 Fattal 1998 Holdings 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 Fattal 1998 i.e., Fattal 1998 and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Fattal 1998 and Mivtach Shamir
Assuming the 90 days trading horizon Fattal 1998 Holdings is expected to generate 0.97 times more return on investment than Mivtach Shamir. However, Fattal 1998 Holdings is 1.03 times less risky than Mivtach Shamir. It trades about 0.45 of its potential returns per unit of risk. Mivtach Shamir is currently generating about -0.1 per unit of risk. If you would invest 4,360,000 in Fattal 1998 Holdings on August 29, 2024 and sell it today you would earn a total of 876,000 from holding Fattal 1998 Holdings or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fattal 1998 Holdings vs. Mivtach Shamir
Performance |
| Timeline |
| Fattal 1998 Holdings |
| Mivtach Shamir |
Fattal 1998 and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fattal 1998 and Mivtach Shamir
The main advantage of trading using opposite Fattal 1998 and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fattal 1998 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.| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli Group |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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