Correlation Between Holmes Place and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Holmes Place 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 Holmes Place and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holmes Place International and Mivne Real Estate, you can compare the effects of market volatilities on Holmes Place 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 Holmes Place with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Mivne Real.
Diversification Opportunities for Holmes Place and Mivne Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holmes and Mivne is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International 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 Holmes Place 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 Holmes Place International 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 Holmes Place i.e., Holmes Place and Mivne Real go up and down completely randomly.
Pair Corralation between Holmes Place and Mivne Real
Assuming the 90 days trading horizon Holmes Place is expected to generate 1.52 times less return on investment than Mivne Real. But when comparing it to its historical volatility, Holmes Place International is 1.06 times less risky than Mivne Real. It trades about 0.08 of its potential returns per unit of risk. Mivne Real Estate is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 89,000 in Mivne Real Estate on September 1, 2024 and sell it today you would earn a total of 19,600 from holding Mivne Real Estate or generate 22.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Mivne Real Estate
Performance |
| Timeline |
| Holmes Place Interna |
| Mivne Real Estate |
Holmes Place and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Mivne Real
The main advantage of trading using opposite Holmes Place and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place 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.| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |