Correlation Between Multi Retail and Clal Insurance
Can any of the company-specific risk be diversified away by investing in both Multi Retail 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 Multi Retail and Clal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Retail Group and Clal Insurance Enterprises, you can compare the effects of market volatilities on Multi Retail 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 Multi Retail with a short position of Clal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Clal Insurance.
Diversification Opportunities for Multi Retail and Clal Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multi and Clal is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group 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 Multi Retail 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 Multi Retail Group 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 Multi Retail i.e., Multi Retail and Clal Insurance go up and down completely randomly.
Pair Corralation between Multi Retail and Clal Insurance
Assuming the 90 days trading horizon Multi Retail Group is expected to generate 2.08 times more return on investment than Clal Insurance. However, Multi Retail is 2.08 times more volatile than Clal Insurance Enterprises. It trades about 0.23 of its potential returns per unit of risk. Clal Insurance Enterprises is currently generating about 0.11 per unit of risk. If you would invest 20,790 in Multi Retail Group on September 20, 2024 and sell it today you would earn a total of 92,710 from holding Multi Retail Group or generate 445.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Clal Insurance Enterprises
Performance |
| Timeline |
| Multi Retail Group |
| Clal Insurance Enter |
Multi Retail and Clal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Clal Insurance
The main advantage of trading using opposite Multi Retail and Clal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail 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.| Multi Retail vs. Sure Tech Investments LP | Multi Retail vs. Iargento Hi Tech | Multi Retail vs. Clal Insurance Enterprises | Multi Retail vs. TAT Technologies |
| Clal Insurance vs. Migdal Insurance | Clal Insurance vs. Harel Insurance Investments | Clal Insurance vs. Israel Discount Bank | Clal Insurance vs. Bank Hapoalim |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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