Correlation Between Meitav Dash and Poalim Ibi
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Poalim Ibi 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 Poalim Ibi 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 Poalim Ibi, you can compare the effects of market volatilities on Meitav Dash and Poalim Ibi 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 Poalim Ibi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Poalim Ibi.
Diversification Opportunities for Meitav Dash and Poalim Ibi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meitav and Poalim is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Poalim Ibi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poalim Ibi 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 Poalim Ibi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poalim Ibi has no effect on the direction of Meitav Dash i.e., Meitav Dash and Poalim Ibi go up and down completely randomly.
Pair Corralation between Meitav Dash and Poalim Ibi
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.91 times more return on investment than Poalim Ibi. However, Meitav Dash Investments is 1.1 times less risky than Poalim Ibi. It trades about 0.11 of its potential returns per unit of risk. Poalim Ibi is currently generating about 0.01 per unit of risk. If you would invest 114,100 in Meitav Dash Investments on September 3, 2024 and sell it today you would earn a total of 155,000 from holding Meitav Dash Investments or generate 135.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Poalim Ibi
Performance |
| Timeline |
| Meitav Dash Investments |
| Poalim Ibi |
Meitav Dash and Poalim Ibi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Poalim Ibi
The main advantage of trading using opposite Meitav Dash and Poalim Ibi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Poalim Ibi 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 Poalim Ibi will offset losses from the drop in Poalim Ibi's long position.| Meitav Dash vs. Bank Hapoalim | Meitav Dash vs. Israel Discount Bank | Meitav Dash vs. First International Bank | Meitav Dash vs. Elbit Systems |
| Poalim Ibi vs. Imed Infinity Medical Limited | Poalim Ibi vs. Discount Investment Corp | Poalim Ibi vs. Isras Investment | Poalim Ibi vs. Oron Group Investments |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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