Correlation Between Migdal Insurance and Fantasy Network
Can any of the company-specific risk be diversified away by investing in both Migdal Insurance and Fantasy Network 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 Fantasy Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Migdal Insurance and Fantasy Network, you can compare the effects of market volatilities on Migdal Insurance and Fantasy Network 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 Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Insurance and Fantasy Network.
Diversification Opportunities for Migdal Insurance and Fantasy Network
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Migdal and Fantasy is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Insurance and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network 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 Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of Migdal Insurance i.e., Migdal Insurance and Fantasy Network go up and down completely randomly.
Pair Corralation between Migdal Insurance and Fantasy Network
Assuming the 90 days trading horizon Migdal Insurance is expected to generate 0.62 times more return on investment than Fantasy Network. However, Migdal Insurance is 1.63 times less risky than Fantasy Network. It trades about 0.38 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.09 per unit of risk. If you would invest 57,750 in Migdal Insurance on August 29, 2024 and sell it today you would earn a total of 6,350 from holding Migdal Insurance or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Migdal Insurance vs. Fantasy Network
Performance |
| Timeline |
| Migdal Insurance |
| Fantasy Network |
Migdal Insurance and Fantasy Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migdal Insurance and Fantasy Network
The main advantage of trading using opposite Migdal Insurance and Fantasy Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Insurance position performs unexpectedly, Fantasy Network 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 Fantasy Network will offset losses from the drop in Fantasy Network'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 |
| Fantasy Network vs. Bank Leumi Le Israel | Fantasy Network vs. Teva Pharmaceutical Industries | Fantasy Network vs. Bank Hapoalim | Fantasy Network vs. Elbit Systems |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |