Correlation Between Harel Index and Migdal Mutual
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By analyzing existing cross correlation between Harel Index Funds and Migdal Mutual Funds, you can compare the effects of market volatilities on Harel Index and Migdal Mutual 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 Harel Index with a short position of Migdal Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and Migdal Mutual.
Diversification Opportunities for Harel Index and Migdal Mutual
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harel and Migdal is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds and Migdal Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Mutual Funds and Harel Index 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 Harel Index Funds are associated (or correlated) with Migdal Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Mutual Funds has no effect on the direction of Harel Index i.e., Harel Index and Migdal Mutual go up and down completely randomly.
Pair Corralation between Harel Index and Migdal Mutual
Assuming the 90 days trading horizon Harel Index Funds is expected to under-perform the Migdal Mutual. In addition to that, Harel Index is 1.09 times more volatile than Migdal Mutual Funds. It trades about -0.45 of its total potential returns per unit of risk. Migdal Mutual Funds is currently generating about -0.04 per unit of volatility. If you would invest 343,600 in Migdal Mutual Funds on August 29, 2024 and sell it today you would lose (2,900) from holding Migdal Mutual Funds or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Index Funds vs. Migdal Mutual Funds
Performance |
| Timeline |
| Harel Index Funds |
| Migdal Mutual Funds |
Harel Index and Migdal Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Index and Migdal Mutual
The main advantage of trading using opposite Harel Index and Migdal Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index position performs unexpectedly, Migdal Mutual 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 Migdal Mutual will offset losses from the drop in Migdal Mutual's long position.The idea behind Harel Index Funds and Migdal Mutual Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Migdal Mutual vs. Harel Index Funds | Migdal Mutual vs. Harel Index Funds | Migdal Mutual vs. Harel Index Funds |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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