Correlation Between Meitav Dash and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Harel Insurance 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 Harel Insurance 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 Harel Insurance Investments, you can compare the effects of market volatilities on Meitav Dash and Harel Insurance 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 Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Harel Insurance.
Diversification Opportunities for Meitav Dash and Harel Insurance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meitav and Harel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve 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 Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Meitav Dash i.e., Meitav Dash and Harel Insurance go up and down completely randomly.
Pair Corralation between Meitav Dash and Harel Insurance
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.98 times more return on investment than Harel Insurance. However, Meitav Dash Investments is 1.02 times less risky than Harel Insurance. It trades about 0.12 of its potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.05 per unit of risk. If you would invest 111,400 in Meitav Dash Investments on September 1, 2024 and sell it today you would earn a total of 157,700 from holding Meitav Dash Investments or generate 141.56% 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. Harel Insurance Investments
Performance |
| Timeline |
| Meitav Dash Investments |
| Harel Insurance Inve |
Meitav Dash and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Harel Insurance
The main advantage of trading using opposite Meitav Dash and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Harel Insurance 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 Harel Insurance will offset losses from the drop in Harel Insurance's long position.| Meitav Dash vs. Homebiogas | Meitav Dash vs. Payment Financial Technologies | Meitav Dash vs. MediPress Health Limited Partnership | Meitav Dash vs. Clal Biotechnology Industries |
| Harel Insurance vs. Menif Financial Services | Harel Insurance vs. Accel Solutions Group | Harel Insurance vs. Rani Zim Shopping | Harel Insurance vs. Rapac Communication Infrastructure |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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