Correlation Between MEITAV INVESTMENTS and YH Dimri
Can any of the company-specific risk be diversified away by investing in both MEITAV INVESTMENTS and YH Dimri 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 YH Dimri 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 YH Dimri Construction, you can compare the effects of market volatilities on MEITAV INVESTMENTS and YH Dimri 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 YH Dimri. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITAV INVESTMENTS and YH Dimri.
Diversification Opportunities for MEITAV INVESTMENTS and YH Dimri
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEITAV and DIMRI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MEITAV INVESTMENTS HOUSE and YH Dimri Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YH Dimri Construction 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 YH Dimri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YH Dimri Construction has no effect on the direction of MEITAV INVESTMENTS i.e., MEITAV INVESTMENTS and YH Dimri go up and down completely randomly.
Pair Corralation between MEITAV INVESTMENTS and YH Dimri
Assuming the 90 days trading horizon MEITAV INVESTMENTS HOUSE is expected to generate 1.29 times more return on investment than YH Dimri. However, MEITAV INVESTMENTS is 1.29 times more volatile than YH Dimri Construction. It trades about 0.23 of its potential returns per unit of risk. YH Dimri Construction is currently generating about 0.14 per unit of risk. If you would invest 167,443 in MEITAV INVESTMENTS HOUSE on September 3, 2024 and sell it today you would earn a total of 101,657 from holding MEITAV INVESTMENTS HOUSE or generate 60.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEITAV INVESTMENTS HOUSE vs. YH Dimri Construction
Performance |
| Timeline |
| MEITAV INVESTMENTS HOUSE |
| YH Dimri Construction |
MEITAV INVESTMENTS and YH Dimri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEITAV INVESTMENTS and YH Dimri
The main advantage of trading using opposite MEITAV INVESTMENTS and YH Dimri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITAV INVESTMENTS position performs unexpectedly, YH Dimri 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 YH Dimri will offset losses from the drop in YH Dimri'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 |
| YH Dimri vs. Azrieli Group | YH Dimri vs. Israel Canada | YH Dimri vs. Ashtrom Group | YH Dimri vs. Shikun Binui |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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