Correlation Between Meitav Dash and YD More
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and YD More 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 YD More 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 YD More Investments, you can compare the effects of market volatilities on Meitav Dash and YD More 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 YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and YD More.
Diversification Opportunities for Meitav Dash and YD More
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meitav and MRIN is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments 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 YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Meitav Dash i.e., Meitav Dash and YD More go up and down completely randomly.
Pair Corralation between Meitav Dash and YD More
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.14 times more return on investment than YD More. However, Meitav Dash is 1.14 times more volatile than YD More Investments. It trades about 0.18 of its potential returns per unit of risk. YD More Investments is currently generating about 0.18 per unit of risk. If you would invest 155,200 in Meitav Dash Investments on August 29, 2024 and sell it today you would earn a total of 124,500 from holding Meitav Dash Investments or generate 80.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.36% |
| Values | Daily Returns |
Meitav Dash Investments vs. YD More Investments
Performance |
| Timeline |
| Meitav Dash Investments |
| YD More Investments |
Meitav Dash and YD More Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and YD More
The main advantage of trading using opposite Meitav Dash and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More's long position.| Meitav Dash vs. Elbit Systems | Meitav Dash vs. Discount Investment Corp | Meitav Dash vs. Clal Insurance Enterprises | Meitav Dash vs. AudioCodes |
| YD More vs. Elbit Systems | YD More vs. Discount Investment Corp | YD More vs. Clal Insurance Enterprises | YD More 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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