Correlation Between Meitav Dash and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Amot Investments 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 Amot Investments 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 Amot Investments, you can compare the effects of market volatilities on Meitav Dash and Amot Investments 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 Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Amot Investments.
Diversification Opportunities for Meitav Dash and Amot Investments
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meitav and Amot is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments 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 Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Meitav Dash i.e., Meitav Dash and Amot Investments go up and down completely randomly.
Pair Corralation between Meitav Dash and Amot Investments
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.09 times more return on investment than Amot Investments. However, Meitav Dash is 1.09 times more volatile than Amot Investments. It trades about 0.22 of its potential returns per unit of risk. Amot Investments is currently generating about 0.06 per unit of risk. If you would invest 159,400 in Meitav Dash Investments on November 3, 2024 and sell it today you would earn a total of 215,600 from holding Meitav Dash Investments or generate 135.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Amot Investments
Performance |
| Timeline |
| Meitav Dash Investments |
| Amot Investments |
Meitav Dash and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Amot Investments
The main advantage of trading using opposite Meitav Dash and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Amot Investments 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 Amot Investments will offset losses from the drop in Amot Investments' long position.| Meitav Dash vs. Priortech | Meitav Dash vs. Magic Software Enterprises | Meitav Dash vs. Retailors | Meitav Dash vs. Elron Electronic Industries |
| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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