Correlation Between Millennium Food and Meitav Dash
Can any of the company-specific risk be diversified away by investing in both Millennium Food and Meitav Dash 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 Millennium Food and Meitav Dash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millennium Food Tech LP and Meitav Dash Investments, you can compare the effects of market volatilities on Millennium Food and Meitav Dash 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 Millennium Food with a short position of Meitav Dash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Food and Meitav Dash.
Diversification Opportunities for Millennium Food and Meitav Dash
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Millennium and Meitav is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Food Tech LP and Meitav Dash Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Dash Investments and Millennium Food 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 Millennium Food Tech LP are associated (or correlated) with Meitav Dash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Dash Investments has no effect on the direction of Millennium Food i.e., Millennium Food and Meitav Dash go up and down completely randomly.
Pair Corralation between Millennium Food and Meitav Dash
Assuming the 90 days trading horizon Millennium Food Tech LP is expected to under-perform the Meitav Dash. But the stock apears to be less risky and, when comparing its historical volatility, Millennium Food Tech LP is 1.45 times less risky than Meitav Dash. The stock trades about -0.16 of its potential returns per unit of risk. The Meitav Dash Investments is currently generating about 0.73 of returns per unit of risk over similar time horizon. If you would invest 191,200 in Meitav Dash Investments on August 29, 2024 and sell it today you would earn a total of 88,500 from holding Meitav Dash Investments or generate 46.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millennium Food Tech LP vs. Meitav Dash Investments
Performance |
| Timeline |
| Millennium Food Tech |
| Meitav Dash Investments |
Millennium Food and Meitav Dash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millennium Food and Meitav Dash
The main advantage of trading using opposite Millennium Food and Meitav Dash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Food position performs unexpectedly, Meitav Dash 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 Meitav Dash will offset losses from the drop in Meitav Dash's long position.| Millennium Food vs. Willy Food | Millennium Food vs. Nextferm Technologies | Millennium Food vs. B Communications | Millennium Food vs. Nova |
| Meitav Dash vs. Elbit Systems | Meitav Dash vs. Discount Investment Corp | Meitav Dash vs. Clal Insurance Enterprises | Meitav Dash vs. AudioCodes |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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