Correlation Between Migdal Insurance and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Migdal Insurance and Suny Cellular 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 Suny Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Migdal Insurance and Suny Cellular Communication, you can compare the effects of market volatilities on Migdal Insurance and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Insurance and Suny Cellular.
Diversification Opportunities for Migdal Insurance and Suny Cellular
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Migdal and Suny is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Insurance and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Migdal Insurance i.e., Migdal Insurance and Suny Cellular go up and down completely randomly.
Pair Corralation between Migdal Insurance and Suny Cellular
Assuming the 90 days trading horizon Migdal Insurance is expected to generate 1.82 times less return on investment than Suny Cellular. But when comparing it to its historical volatility, Migdal Insurance is 1.73 times less risky than Suny Cellular. It trades about 0.22 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 10,510 in Suny Cellular Communication on September 1, 2024 and sell it today you would earn a total of 1,190 from holding Suny Cellular Communication or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Migdal Insurance vs. Suny Cellular Communication
Performance |
| Timeline |
| Migdal Insurance |
| Suny Cellular Commun |
Migdal Insurance and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migdal Insurance and Suny Cellular
The main advantage of trading using opposite Migdal Insurance and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Insurance position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Migdal Insurance vs. Menif Financial Services | Migdal Insurance vs. Accel Solutions Group | Migdal Insurance vs. Rani Zim Shopping | Migdal Insurance vs. Rapac Communication Infrastructure |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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