Correlation Between GFC Green and Meitav Dash
Can any of the company-specific risk be diversified away by investing in both GFC Green 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 GFC Green and Meitav Dash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFC Green Fields and Meitav Dash Investments, you can compare the effects of market volatilities on GFC Green 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 GFC Green with a short position of Meitav Dash. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFC Green and Meitav Dash.
Diversification Opportunities for GFC Green and Meitav Dash
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GFC and Meitav is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GFC Green Fields 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 GFC Green 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 GFC Green Fields 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 GFC Green i.e., GFC Green and Meitav Dash go up and down completely randomly.
Pair Corralation between GFC Green and Meitav Dash
Assuming the 90 days trading horizon GFC Green Fields is expected to under-perform the Meitav Dash. In addition to that, GFC Green is 1.1 times more volatile than Meitav Dash Investments. It trades about -0.02 of its total potential returns per unit of risk. Meitav Dash Investments is currently generating about 0.29 per unit of volatility. If you would invest 158,600 in Meitav Dash Investments on September 13, 2024 and sell it today you would earn a total of 137,100 from holding Meitav Dash Investments or generate 86.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFC Green Fields vs. Meitav Dash Investments
Performance |
| Timeline |
| GFC Green Fields |
| Meitav Dash Investments |
GFC Green and Meitav Dash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFC Green and Meitav Dash
The main advantage of trading using opposite GFC Green and Meitav Dash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFC Green 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.| GFC Green vs. Silver Castle Holdings | GFC Green vs. Computer Direct | GFC Green vs. Meitav Trade Inv | GFC Green vs. Multi Retail Group |
| Meitav Dash vs. Bank Hapoalim | Meitav Dash vs. Israel Discount Bank | Meitav Dash vs. Mizrahi Tefahot | Meitav Dash vs. Bezeq Israeli Telecommunication |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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