Correlation Between Multi Retail and Mydas Real
Can any of the company-specific risk be diversified away by investing in both Multi Retail and Mydas Real 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 Mydas Real 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 Mydas Real Estate, you can compare the effects of market volatilities on Multi Retail and Mydas Real 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 Mydas Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Mydas Real.
Diversification Opportunities for Multi Retail and Mydas Real
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Mydas is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Mydas Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mydas Real Estate 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 Mydas Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mydas Real Estate has no effect on the direction of Multi Retail i.e., Multi Retail and Mydas Real go up and down completely randomly.
Pair Corralation between Multi Retail and Mydas Real
Assuming the 90 days trading horizon Multi Retail Group is expected to generate 1.14 times more return on investment than Mydas Real. However, Multi Retail is 1.14 times more volatile than Mydas Real Estate. It trades about 0.24 of its potential returns per unit of risk. Mydas Real Estate is currently generating about 0.01 per unit of risk. If you would invest 30,270 in Multi Retail Group on August 25, 2024 and sell it today you would earn a total of 81,830 from holding Multi Retail Group or generate 270.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Retail Group vs. Mydas Real Estate
Performance |
| Timeline |
| Multi Retail Group |
| Mydas Real Estate |
Multi Retail and Mydas Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Retail and Mydas Real
The main advantage of trading using opposite Multi Retail and Mydas Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Retail position performs unexpectedly, Mydas Real 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 Mydas Real will offset losses from the drop in Mydas Real's long position.| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail vs. Bezeq Israeli Telecommunication |
| Mydas Real vs. Sure Tech Investments LP | Mydas Real vs. Abra Information Technologies | Mydas Real vs. GODM Investments | Mydas Real vs. Multi Retail Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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