Correlation Between Meitav Dash and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Analyst IMS 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 Analyst IMS 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 Analyst IMS Investment, you can compare the effects of market volatilities on Meitav Dash and Analyst IMS 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 Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Analyst IMS.
Diversification Opportunities for Meitav Dash and Analyst IMS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meitav and Analyst is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment 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 Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Meitav Dash i.e., Meitav Dash and Analyst IMS go up and down completely randomly.
Pair Corralation between Meitav Dash and Analyst IMS
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.78 times more return on investment than Analyst IMS. However, Meitav Dash is 1.78 times more volatile than Analyst IMS Investment. It trades about 0.38 of its potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.29 per unit of risk. If you would invest 183,600 in Meitav Dash Investments on August 29, 2024 and sell it today you would earn a total of 96,100 from holding Meitav Dash Investments or generate 52.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Analyst IMS Investment
Performance |
| Timeline |
| Meitav Dash Investments |
| Analyst IMS Investment |
Meitav Dash and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Analyst IMS
The main advantage of trading using opposite Meitav Dash and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Meitav Dash vs. Elbit Systems | Meitav Dash vs. Discount Investment Corp | Meitav Dash vs. Clal Insurance Enterprises | Meitav Dash vs. AudioCodes |
| Analyst IMS vs. Elbit Systems | Analyst IMS vs. Discount Investment Corp | Analyst IMS vs. Clal Insurance Enterprises | Analyst IMS vs. AudioCodes |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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