Correlation Between IES Holdings and Mydas Real
Can any of the company-specific risk be diversified away by investing in both IES Holdings and Mydas 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 IES Holdings and Mydas Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IES Holdings and Mydas Real Estate, you can compare the effects of market volatilities on IES Holdings and Mydas 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 IES Holdings with a short position of Mydas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of IES Holdings and Mydas Real.
Diversification Opportunities for IES Holdings and Mydas Real
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IES and Mydas is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding IES Holdings and Mydas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mydas Real Estate and IES Holdings 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 IES Holdings are associated (or correlated) with Mydas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mydas Real Estate has no effect on the direction of IES Holdings i.e., IES Holdings and Mydas Real go up and down completely randomly.
Pair Corralation between IES Holdings and Mydas Real
Assuming the 90 days trading horizon IES Holdings is expected to generate 0.38 times more return on investment than Mydas Real. However, IES Holdings is 2.64 times less risky than Mydas Real. It trades about 0.65 of its potential returns per unit of risk. Mydas Real Estate is currently generating about -0.27 per unit of risk. If you would invest 1,958,000 in IES Holdings on August 29, 2024 and sell it today you would earn a total of 403,000 from holding IES Holdings or generate 20.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IES Holdings vs. Mydas Real Estate
Performance |
| Timeline |
| IES Holdings |
| Mydas Real Estate |
IES Holdings and Mydas Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IES Holdings and Mydas Real
The main advantage of trading using opposite IES Holdings and Mydas Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IES Holdings position performs unexpectedly, Mydas 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 Mydas Real will offset losses from the drop in Mydas Real's long position.| IES Holdings vs. Israel Canada | IES Holdings vs. Delek Group | IES Holdings vs. Shikun Binui | IES Holdings vs. Israel Discount Bank |
| Mydas Real vs. Israel Canada | Mydas Real vs. Delek Group | Mydas Real vs. Shikun Binui | Mydas Real vs. Israel Discount Bank |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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