Correlation Between Kafrit and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Kafrit 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 Kafrit and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kafrit and Mivne Real Estate, you can compare the effects of market volatilities on Kafrit 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 Kafrit with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafrit and Mivne Real.
Diversification Opportunities for Kafrit and Mivne Real
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kafrit and Mivne is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kafrit 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 Kafrit 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 Kafrit 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 Kafrit i.e., Kafrit and Mivne Real go up and down completely randomly.
Pair Corralation between Kafrit and Mivne Real
Assuming the 90 days trading horizon Kafrit is expected to generate 3.86 times less return on investment than Mivne Real. In addition to that, Kafrit is 1.61 times more volatile than Mivne Real Estate. It trades about 0.03 of its total potential returns per unit of risk. Mivne Real Estate is currently generating about 0.21 per unit of volatility. If you would invest 102,300 in Mivne Real Estate on September 1, 2024 and sell it today you would earn a total of 6,300 from holding Mivne Real Estate or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kafrit vs. Mivne Real Estate
Performance |
| Timeline |
| Kafrit |
| Mivne Real Estate |
Kafrit and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kafrit and Mivne Real
The main advantage of trading using opposite Kafrit and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kafrit 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.The idea behind Kafrit and Mivne Real Estate 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.| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world |