Correlation Between Bank Leumi and Maytronics
Can any of the company-specific risk be diversified away by investing in both Bank Leumi and Maytronics 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 Bank Leumi and Maytronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Leumi Le Israel and Maytronics, you can compare the effects of market volatilities on Bank Leumi and Maytronics 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 Bank Leumi with a short position of Maytronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Leumi and Maytronics.
Diversification Opportunities for Bank Leumi and Maytronics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Maytronics is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Leumi Le Israel and Maytronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maytronics and Bank Leumi 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 Bank Leumi Le Israel are associated (or correlated) with Maytronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maytronics has no effect on the direction of Bank Leumi i.e., Bank Leumi and Maytronics go up and down completely randomly.
Pair Corralation between Bank Leumi and Maytronics
Assuming the 90 days trading horizon Bank Leumi Le Israel is expected to generate 0.48 times more return on investment than Maytronics. However, Bank Leumi Le Israel is 2.1 times less risky than Maytronics. It trades about 0.09 of its potential returns per unit of risk. Maytronics is currently generating about -0.09 per unit of risk. If you would invest 264,757 in Bank Leumi Le Israel on August 29, 2024 and sell it today you would earn a total of 164,343 from holding Bank Leumi Le Israel or generate 62.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Leumi Le Israel vs. Maytronics
Performance |
| Timeline |
| Bank Leumi Le |
| Maytronics |
Bank Leumi and Maytronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Leumi and Maytronics
The main advantage of trading using opposite Bank Leumi and Maytronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Leumi position performs unexpectedly, Maytronics 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 Maytronics will offset losses from the drop in Maytronics' long position.| Bank Leumi vs. Bank Hapoalim | Bank Leumi vs. Israel Discount Bank | Bank Leumi vs. Mizrahi Tefahot | Bank Leumi vs. Bezeq Israeli Telecommunication |
| Maytronics vs. Direct Capital Investments | Maytronics vs. Safe T Group | Maytronics vs. Israel China Biotechnology | Maytronics vs. Biomedix Incubator |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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