Correlation Between Migdal Insurance and Elbit Medical
Can any of the company-specific risk be diversified away by investing in both Migdal Insurance and Elbit Medical 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 Migdal Insurance and Elbit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Migdal Insurance and Elbit Medical Technologies, you can compare the effects of market volatilities on Migdal Insurance and Elbit Medical 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 Migdal Insurance with a short position of Elbit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Insurance and Elbit Medical.
Diversification Opportunities for Migdal Insurance and Elbit Medical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Migdal and Elbit is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Insurance and Elbit Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Medical Techno and Migdal Insurance 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 Migdal Insurance are associated (or correlated) with Elbit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Medical Techno has no effect on the direction of Migdal Insurance i.e., Migdal Insurance and Elbit Medical go up and down completely randomly.
Pair Corralation between Migdal Insurance and Elbit Medical
Assuming the 90 days trading horizon Migdal Insurance is expected to generate 0.33 times more return on investment than Elbit Medical. However, Migdal Insurance is 2.99 times less risky than Elbit Medical. It trades about 0.35 of its potential returns per unit of risk. Elbit Medical Technologies is currently generating about 0.08 per unit of risk. If you would invest 43,486 in Migdal Insurance on November 3, 2024 and sell it today you would earn a total of 30,094 from holding Migdal Insurance or generate 69.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Migdal Insurance vs. Elbit Medical Technologies
Performance |
| Timeline |
| Migdal Insurance |
| Elbit Medical Techno |
Migdal Insurance and Elbit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migdal Insurance and Elbit Medical
The main advantage of trading using opposite Migdal Insurance and Elbit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Insurance position performs unexpectedly, Elbit Medical 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 Elbit Medical will offset losses from the drop in Elbit Medical's long position.| Migdal Insurance vs. Harel Insurance Investments | Migdal Insurance vs. Clal Insurance Enterprises | Migdal Insurance vs. Bank Hapoalim | Migdal Insurance vs. Bank Leumi Le Israel |
| Elbit Medical vs. Blender Financial Technologies | Elbit Medical vs. Unicorn Technologies | Elbit Medical vs. Millennium Food Tech LP | Elbit Medical vs. Clal Biotechnology Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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