Correlation Between MediPress Health and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both MediPress Health and Clal Insurance 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 MediPress Health and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediPress Health Limited Partnership and Clal Insurance Enterprises, you can compare the effects of market volatilities on MediPress Health and Clal Insurance 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 MediPress Health with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Clal Insurance.
Diversification Opportunities for MediPress Health and Clal Insurance
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MediPress and Clal is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Clal Insurance Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Insurance Enter and MediPress Health 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 MediPress Health Limited Partnership are associated (or correlated) with Clal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Insurance Enter has no effect on the direction of MediPress Health i.e., MediPress Health and Clal Insurance go up and down completely randomly.
Pair Corralation between MediPress Health and Clal Insurance
Assuming the 90 days trading horizon MediPress Health Limited Partnership is expected to generate 1.4 times more return on investment than Clal Insurance. However, MediPress Health is 1.4 times more volatile than Clal Insurance Enterprises. It trades about 0.37 of its potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.25 per unit of risk. If you would invest 6,660 in MediPress Health Limited Partnership on September 1, 2024 and sell it today you would earn a total of 1,010 from holding MediPress Health Limited Partnership or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MediPress Health Limited Partn vs. Clal Insurance Enterprises
Performance |
| Timeline |
| MediPress Health Lim |
| Clal Insurance Enter |
MediPress Health and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediPress Health and Clal Insurance
The main advantage of trading using opposite MediPress Health and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediPress Health position performs unexpectedly, Clal Insurance 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 Clal Insurance will offset losses from the drop in Clal Insurance's long position.| MediPress Health vs. Nice | MediPress Health vs. The Gold Bond | MediPress Health vs. Bank Leumi Le Israel | MediPress Health vs. ICL Israel Chemicals |
| Clal Insurance vs. Menif Financial Services | Clal Insurance vs. Accel Solutions Group | Clal Insurance vs. Rani Zim Shopping | Clal Insurance vs. Rapac Communication Infrastructure |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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