Correlation Between Multi Retail and Issta Lines
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Issta Lines 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 Issta Lines 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 Issta Lines, you can compare the effects of market volatilities on Multi Retail and Issta Lines 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 Issta Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Issta Lines.
Diversification Opportunities for Multi Retail and Issta Lines
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multi and Issta is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Issta Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issta Lines 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 Issta Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issta Lines has no effect on the direction of Multi Retail i.e., Multi Retail and Issta Lines go up and down completely randomly.
Pair Corralation between Multi Retail and Issta Lines
Assuming the 90 days trading horizon Multi Retail is expected to generate 4.01 times less return on investment than Issta Lines. In addition to that, Multi Retail is 1.23 times more volatile than Issta Lines. It trades about 0.0 of its total potential returns per unit of risk. Issta Lines is currently generating about 0.02 per unit of volatility. If you would invest 905,568 in Issta Lines on September 13, 2024 and sell it today you would earn a total of 35,332 from holding Issta Lines or generate 3.9% 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. Issta Lines
Performance |
| Timeline |
| Multi Retail Group |
| Issta Lines |
Multi Retail and Issta Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Issta Lines
The main advantage of trading using opposite Multi Retail and Issta Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Issta Lines 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 Issta Lines will offset losses from the drop in Issta Lines' long position.| Multi Retail vs. B Communications | Multi Retail vs. Photomyne | Multi Retail vs. M Yochananof and | Multi Retail vs. Clal Biotechnology Industries |
| Issta Lines vs. Fattal 1998 Holdings | Issta Lines vs. Israel Discount Bank | Issta Lines vs. Azrieli Group | Issta Lines vs. Shufersal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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