Correlation Between Meitav Dash and Amanet Management
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Amanet Management 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 Dash and Amanet Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meitav Dash Investments and Amanet Management Systems, you can compare the effects of market volatilities on Meitav Dash and Amanet Management 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 Dash with a short position of Amanet Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Amanet Management.
Diversification Opportunities for Meitav Dash and Amanet Management
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meitav and Amanet is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Amanet Management Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanet Management Systems and Meitav Dash 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 Dash Investments are associated (or correlated) with Amanet Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanet Management Systems has no effect on the direction of Meitav Dash i.e., Meitav Dash and Amanet Management go up and down completely randomly.
Pair Corralation between Meitav Dash and Amanet Management
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 2.05 times more return on investment than Amanet Management. However, Meitav Dash is 2.05 times more volatile than Amanet Management Systems. It trades about 0.53 of its potential returns per unit of risk. Amanet Management Systems is currently generating about 0.2 per unit of risk. If you would invest 200,000 in Meitav Dash Investments on August 31, 2024 and sell it today you would earn a total of 69,100 from holding Meitav Dash Investments or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Amanet Management Systems
Performance |
| Timeline |
| Meitav Dash Investments |
| Amanet Management Systems |
Meitav Dash and Amanet Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Amanet Management
The main advantage of trading using opposite Meitav Dash and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Amanet Management 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 Amanet Management will offset losses from the drop in Amanet Management's long position.| Meitav Dash vs. Menif Financial Services | Meitav Dash vs. Accel Solutions Group | Meitav Dash vs. Rani Zim Shopping | Meitav Dash vs. Mivtach Shamir |
| Amanet Management vs. Arad | Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Danel | Amanet Management vs. Airport City |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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