Correlation Between MEITAV INVESTMENTS and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both MEITAV INVESTMENTS and Batm Advanced 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 MEITAV INVESTMENTS and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEITAV INVESTMENTS HOUSE and Batm Advanced Communications, you can compare the effects of market volatilities on MEITAV INVESTMENTS and Batm Advanced 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 MEITAV INVESTMENTS with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITAV INVESTMENTS and Batm Advanced.
Diversification Opportunities for MEITAV INVESTMENTS and Batm Advanced
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEITAV and Batm is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MEITAV INVESTMENTS HOUSE and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun and MEITAV INVESTMENTS 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 MEITAV INVESTMENTS HOUSE are associated (or correlated) with Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of MEITAV INVESTMENTS i.e., MEITAV INVESTMENTS and Batm Advanced go up and down completely randomly.
Pair Corralation between MEITAV INVESTMENTS and Batm Advanced
Assuming the 90 days trading horizon MEITAV INVESTMENTS HOUSE is expected to generate 1.33 times more return on investment than Batm Advanced. However, MEITAV INVESTMENTS is 1.33 times more volatile than Batm Advanced Communications. It trades about 0.38 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.12 per unit of risk. If you would invest 183,300 in MEITAV INVESTMENTS HOUSE on August 29, 2024 and sell it today you would earn a total of 96,400 from holding MEITAV INVESTMENTS HOUSE or generate 52.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEITAV INVESTMENTS HOUSE vs. Batm Advanced Communications
Performance |
| Timeline |
| MEITAV INVESTMENTS HOUSE |
| Batm Advanced Commun |
MEITAV INVESTMENTS and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEITAV INVESTMENTS and Batm Advanced
The main advantage of trading using opposite MEITAV INVESTMENTS and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITAV INVESTMENTS position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| MEITAV INVESTMENTS vs. Nice | MEITAV INVESTMENTS vs. The Gold Bond | MEITAV INVESTMENTS vs. Bank Leumi Le Israel | MEITAV INVESTMENTS vs. ICL Israel Chemicals |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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