Correlation Between Meitav Dash and Mobile Max
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Mobile Max 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 Mobile Max 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 Mobile Max M, you can compare the effects of market volatilities on Meitav Dash and Mobile Max 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 Mobile Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Mobile Max.
Diversification Opportunities for Meitav Dash and Mobile Max
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meitav and Mobile is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Mobile Max M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Max M 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 Mobile Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Max M has no effect on the direction of Meitav Dash i.e., Meitav Dash and Mobile Max go up and down completely randomly.
Pair Corralation between Meitav Dash and Mobile Max
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.4 times more return on investment than Mobile Max. However, Meitav Dash is 1.4 times more volatile than Mobile Max M. It trades about 0.53 of its potential returns per unit of risk. Mobile Max M is currently generating about -0.38 per unit of risk. If you would invest 200,000 in Meitav Dash Investments on August 31, 2024 and sell it today you would earn a total of 69,100 from holding Meitav Dash Investments or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Mobile Max M
Performance |
| Timeline |
| Meitav Dash Investments |
| Mobile Max M |
Meitav Dash and Mobile Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Mobile Max
The main advantage of trading using opposite Meitav Dash and Mobile Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Mobile Max 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 Mobile Max will offset losses from the drop in Mobile Max'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 |
| Mobile Max vs. Palram | Mobile Max vs. Shagrir Group Vehicle | Mobile Max vs. EN Shoham Business | Mobile Max vs. Shufersal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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