Correlation Between Human Xtensions and MEITAV INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Human Xtensions and MEITAV INVESTMENTS 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 Human Xtensions and MEITAV INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Human Xtensions and MEITAV INVESTMENTS HOUSE, you can compare the effects of market volatilities on Human Xtensions and MEITAV INVESTMENTS 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 Human Xtensions with a short position of MEITAV INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Human Xtensions and MEITAV INVESTMENTS.
Diversification Opportunities for Human Xtensions and MEITAV INVESTMENTS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Human and MEITAV is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Human Xtensions and MEITAV INVESTMENTS HOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITAV INVESTMENTS HOUSE and Human Xtensions 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 Human Xtensions are associated (or correlated) with MEITAV INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITAV INVESTMENTS HOUSE has no effect on the direction of Human Xtensions i.e., Human Xtensions and MEITAV INVESTMENTS go up and down completely randomly.
Pair Corralation between Human Xtensions and MEITAV INVESTMENTS
Assuming the 90 days trading horizon Human Xtensions is expected to under-perform the MEITAV INVESTMENTS. In addition to that, Human Xtensions is 2.44 times more volatile than MEITAV INVESTMENTS HOUSE. It trades about -0.02 of its total potential returns per unit of risk. MEITAV INVESTMENTS HOUSE is currently generating about 0.18 per unit of volatility. If you would invest 375,000 in MEITAV INVESTMENTS HOUSE on December 1, 2024 and sell it today you would earn a total of 26,100 from holding MEITAV INVESTMENTS HOUSE or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Human Xtensions vs. MEITAV INVESTMENTS HOUSE
Performance |
| Timeline |
| Human Xtensions |
| MEITAV INVESTMENTS HOUSE |
Human Xtensions and MEITAV INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Human Xtensions and MEITAV INVESTMENTS
The main advantage of trading using opposite Human Xtensions and MEITAV INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Human Xtensions position performs unexpectedly, MEITAV INVESTMENTS 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 INVESTMENTS will offset losses from the drop in MEITAV INVESTMENTS's long position.| Human Xtensions vs. G Willi Food International | Human Xtensions vs. Abra Information Technologies | Human Xtensions vs. Computer Direct | Human Xtensions vs. YH Dimri Construction |
| MEITAV INVESTMENTS vs. Nice | MEITAV INVESTMENTS vs. The Gold Bond | MEITAV INVESTMENTS vs. Bank Leumi Le Israel | MEITAV INVESTMENTS vs. ICL Israel Chemicals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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