Correlation Between Mivtach Shamir and Elbit Systems
Can any of the company-specific risk be diversified away by investing in both Mivtach Shamir and Elbit Systems 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 Mivtach Shamir and Elbit Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mivtach Shamir and Elbit Systems, you can compare the effects of market volatilities on Mivtach Shamir and Elbit Systems 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 Mivtach Shamir with a short position of Elbit Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivtach Shamir and Elbit Systems.
Diversification Opportunities for Mivtach Shamir and Elbit Systems
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mivtach and Elbit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir and Elbit Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Systems and Mivtach Shamir 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 Mivtach Shamir are associated (or correlated) with Elbit Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Systems has no effect on the direction of Mivtach Shamir i.e., Mivtach Shamir and Elbit Systems go up and down completely randomly.
Pair Corralation between Mivtach Shamir and Elbit Systems
Assuming the 90 days trading horizon Mivtach Shamir is expected to under-perform the Elbit Systems. In addition to that, Mivtach Shamir is 1.06 times more volatile than Elbit Systems. It trades about -0.21 of its total potential returns per unit of risk. Elbit Systems is currently generating about 0.09 per unit of volatility. If you would invest 8,551,000 in Elbit Systems on September 1, 2024 and sell it today you would earn a total of 269,000 from holding Elbit Systems or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mivtach Shamir vs. Elbit Systems
Performance |
| Timeline |
| Mivtach Shamir |
| Elbit Systems |
Mivtach Shamir and Elbit Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivtach Shamir and Elbit Systems
The main advantage of trading using opposite Mivtach Shamir and Elbit Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivtach Shamir position performs unexpectedly, Elbit Systems 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 Systems will offset losses from the drop in Elbit Systems' long position.| Mivtach Shamir vs. Menif Financial Services | Mivtach Shamir vs. Accel Solutions Group | Mivtach Shamir vs. Rani Zim Shopping | Mivtach Shamir vs. Rapac Communication Infrastructure |
| Elbit Systems vs. Arad | Elbit Systems vs. Alony Hetz Properties | Elbit Systems vs. Airport City | Elbit Systems vs. Harel Insurance Investments |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |