Correlation Between Meitav Dash and Netz Hotels
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Netz Hotels 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 Netz Hotels 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 Netz Hotels, you can compare the effects of market volatilities on Meitav Dash and Netz Hotels 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 Netz Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Netz Hotels.
Diversification Opportunities for Meitav Dash and Netz Hotels
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meitav and Netz is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Netz Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netz Hotels 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 Netz Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netz Hotels has no effect on the direction of Meitav Dash i.e., Meitav Dash and Netz Hotels go up and down completely randomly.
Pair Corralation between Meitav Dash and Netz Hotels
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.97 times more return on investment than Netz Hotels. However, Meitav Dash Investments is 1.03 times less risky than Netz Hotels. It trades about 0.56 of its potential returns per unit of risk. Netz Hotels is currently generating about 0.34 per unit of risk. If you would invest 195,000 in Meitav Dash Investments on August 30, 2024 and sell it today you would earn a total of 74,100 from holding Meitav Dash Investments or generate 38.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Netz Hotels
Performance |
| Timeline |
| Meitav Dash Investments |
| Netz Hotels |
Meitav Dash and Netz Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Netz Hotels
The main advantage of trading using opposite Meitav Dash and Netz Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Netz Hotels 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 Netz Hotels will offset losses from the drop in Netz Hotels' long position.| Meitav Dash vs. Elbit Systems | Meitav Dash vs. Discount Investment Corp | Meitav Dash vs. AudioCodes | Meitav Dash vs. Shufersal |
| Netz Hotels vs. Direct Capital Investments | Netz Hotels vs. B Communications | Netz Hotels vs. Holmes Place International | Netz Hotels vs. Nova |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |