Correlation Between Meitav Dash and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Gamatronic Electronic 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 Gamatronic Electronic 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 Gamatronic Electronic Industries, you can compare the effects of market volatilities on Meitav Dash and Gamatronic Electronic 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 Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Gamatronic Electronic.
Diversification Opportunities for Meitav Dash and Gamatronic Electronic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meitav and Gamatronic is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic 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 Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Meitav Dash i.e., Meitav Dash and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between Meitav Dash and Gamatronic Electronic
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.59 times more return on investment than Gamatronic Electronic. However, Meitav Dash Investments is 1.69 times less risky than Gamatronic Electronic. It trades about 0.12 of its potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about -0.03 per unit of risk. If you would invest 134,508 in Meitav Dash Investments on August 31, 2024 and sell it today you would earn a total of 134,592 from holding Meitav Dash Investments or generate 100.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Gamatronic Electronic Industri
Performance |
| Timeline |
| Meitav Dash Investments |
| Gamatronic Electronic |
Meitav Dash and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Gamatronic Electronic
The main advantage of trading using opposite Meitav Dash and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic'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 |
| Gamatronic Electronic vs. Ram On Investments and | Gamatronic Electronic vs. Golan Plastic | Gamatronic Electronic vs. Millennium Food Tech LP | Gamatronic Electronic vs. Meitav Dash Investments |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |