Correlation Between Mivtach Shamir and Generation Capital
Can any of the company-specific risk be diversified away by investing in both Mivtach Shamir and Generation Capital 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 Generation Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mivtach Shamir and Generation Capital, you can compare the effects of market volatilities on Mivtach Shamir and Generation Capital 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 Generation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivtach Shamir and Generation Capital.
Diversification Opportunities for Mivtach Shamir and Generation Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mivtach and Generation is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir and Generation Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Capital 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 Generation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Capital has no effect on the direction of Mivtach Shamir i.e., Mivtach Shamir and Generation Capital go up and down completely randomly.
Pair Corralation between Mivtach Shamir and Generation Capital
Assuming the 90 days trading horizon Mivtach Shamir is expected to generate 1.23 times more return on investment than Generation Capital. However, Mivtach Shamir is 1.23 times more volatile than Generation Capital. It trades about 0.32 of its potential returns per unit of risk. Generation Capital is currently generating about 0.07 per unit of risk. If you would invest 1,970,000 in Mivtach Shamir on November 8, 2024 and sell it today you would earn a total of 309,000 from holding Mivtach Shamir or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mivtach Shamir vs. Generation Capital
Performance |
| Timeline |
| Mivtach Shamir |
| Generation Capital |
Mivtach Shamir and Generation Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivtach Shamir and Generation Capital
The main advantage of trading using opposite Mivtach Shamir and Generation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivtach Shamir position performs unexpectedly, Generation Capital 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 Generation Capital will offset losses from the drop in Generation Capital's long position.| Mivtach Shamir vs. EN Shoham Business | Mivtach Shamir vs. Accel Solutions Group | Mivtach Shamir vs. Menif Financial Services | Mivtach Shamir vs. Rapac Communication Infrastructure |
| Generation Capital vs. PennantPark Floating Rate | Generation Capital vs. Altshuler Shaham Financial | Generation Capital vs. Meitav Dash Investments | Generation Capital vs. IBI Inv House |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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