Correlation Between Multi Retail and Fantasy Network
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Fantasy Network 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 Fantasy Network 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 Fantasy Network, you can compare the effects of market volatilities on Multi Retail and Fantasy Network 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 Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Fantasy Network.
Diversification Opportunities for Multi Retail and Fantasy Network
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Fantasy is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network 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 Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of Multi Retail i.e., Multi Retail and Fantasy Network go up and down completely randomly.
Pair Corralation between Multi Retail and Fantasy Network
Assuming the 90 days trading horizon Multi Retail Group is expected to generate 0.79 times more return on investment than Fantasy Network. However, Multi Retail Group is 1.27 times less risky than Fantasy Network. It trades about 0.0 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.05 per unit of risk. If you would invest 136,800 in Multi Retail Group on September 3, 2024 and sell it today you would lose (32,900) from holding Multi Retail Group or give up 24.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Fantasy Network
Performance |
| Timeline |
| Multi Retail Group |
| Fantasy Network |
Multi Retail and Fantasy Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Fantasy Network
The main advantage of trading using opposite Multi Retail and Fantasy Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Fantasy Network 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 Fantasy Network will offset losses from the drop in Fantasy Network's long position.| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Israel Land Development |
| Fantasy Network vs. Bezeq Israeli Telecommunication | Fantasy Network vs. Cellcom Israel | Fantasy Network vs. Tower Semiconductor | Fantasy Network vs. Israel Discount Bank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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