Correlation Between MEITAV INVESTMENTS and C Mer
Can any of the company-specific risk be diversified away by investing in both MEITAV INVESTMENTS and C Mer 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 C Mer 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 C Mer Industries, you can compare the effects of market volatilities on MEITAV INVESTMENTS and C Mer 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 C Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITAV INVESTMENTS and C Mer.
Diversification Opportunities for MEITAV INVESTMENTS and C Mer
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MEITAV and CMER is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MEITAV INVESTMENTS HOUSE and C Mer Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Mer Industries 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 C Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Mer Industries has no effect on the direction of MEITAV INVESTMENTS i.e., MEITAV INVESTMENTS and C Mer go up and down completely randomly.
Pair Corralation between MEITAV INVESTMENTS and C Mer
Assuming the 90 days trading horizon MEITAV INVESTMENTS is expected to generate 1.77 times less return on investment than C Mer. But when comparing it to its historical volatility, MEITAV INVESTMENTS HOUSE is 2.02 times less risky than C Mer. It trades about 0.14 of its potential returns per unit of risk. C Mer Industries is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 49,400 in C Mer Industries on September 13, 2024 and sell it today you would earn a total of 219,300 from holding C Mer Industries or generate 443.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEITAV INVESTMENTS HOUSE vs. C Mer Industries
Performance |
| Timeline |
| MEITAV INVESTMENTS HOUSE |
| C Mer Industries |
MEITAV INVESTMENTS and C Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEITAV INVESTMENTS and C Mer
The main advantage of trading using opposite MEITAV INVESTMENTS and C Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITAV INVESTMENTS position performs unexpectedly, C Mer 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 C Mer will offset losses from the drop in C Mer'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 |
| C Mer vs. Analyst IMS Investment | C Mer vs. Millennium Food Tech LP | C Mer vs. Adgar Investments and | C Mer vs. MEITAV INVESTMENTS HOUSE |
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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