Correlation Between Meitav Dash and IBI Inv
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and IBI Inv 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 IBI Inv 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 IBI Inv House, you can compare the effects of market volatilities on Meitav Dash and IBI Inv 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 IBI Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and IBI Inv.
Diversification Opportunities for Meitav Dash and IBI Inv
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meitav and IBI is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and IBI Inv House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBI Inv House 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 IBI Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBI Inv House has no effect on the direction of Meitav Dash i.e., Meitav Dash and IBI Inv go up and down completely randomly.
Pair Corralation between Meitav Dash and IBI Inv
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.05 times more return on investment than IBI Inv. However, Meitav Dash is 1.05 times more volatile than IBI Inv House. It trades about 0.15 of its potential returns per unit of risk. IBI Inv House is currently generating about 0.16 per unit of risk. If you would invest 111,200 in Meitav Dash Investments on November 1, 2024 and sell it today you would earn a total of 263,700 from holding Meitav Dash Investments or generate 237.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Meitav Dash Investments vs. IBI Inv House
Performance |
| Timeline |
| Meitav Dash Investments |
| IBI Inv House |
Meitav Dash and IBI Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and IBI Inv
The main advantage of trading using opposite Meitav Dash and IBI Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, IBI Inv 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 IBI Inv will offset losses from the drop in IBI Inv's long position.| Meitav Dash vs. MEITAV INVESTMENTS HOUSE | Meitav Dash vs. Electreon Wireless | Meitav Dash vs. IDI Insurance | Meitav Dash vs. Arad Investment Industrial |
| IBI Inv vs. Batm Advanced Communications | IBI Inv vs. Gilat Telecom Global | IBI Inv vs. Bezeq Israeli Telecommunication | IBI Inv vs. Suny Cellular Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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