Correlation Between Meitav Dash and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Meitav Dash and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Suny Cellular.
Diversification Opportunities for Meitav Dash and Suny Cellular
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meitav and Suny is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Meitav Dash i.e., Meitav Dash and Suny Cellular go up and down completely randomly.
Pair Corralation between Meitav Dash and Suny Cellular
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 1.2 times more return on investment than Suny Cellular. However, Meitav Dash is 1.2 times more volatile than Suny Cellular Communication. It trades about 0.64 of its potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.55 per unit of risk. If you would invest 208,800 in Meitav Dash Investments on September 13, 2024 and sell it today you would earn a total of 86,900 from holding Meitav Dash Investments or generate 41.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Suny Cellular Communication
Performance |
| Timeline |
| Meitav Dash Investments |
| Suny Cellular Commun |
Meitav Dash and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Suny Cellular
The main advantage of trading using opposite Meitav Dash and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular's long position.| Meitav Dash vs. Bank Hapoalim | Meitav Dash vs. Israel Discount Bank | Meitav Dash vs. Mizrahi Tefahot | Meitav Dash vs. Bezeq Israeli Telecommunication |
| Suny Cellular vs. Teva Pharmaceutical Industries | Suny Cellular vs. Elbit Systems | Suny Cellular vs. Nice | Suny Cellular vs. Bezeq Israeli Telecommunication |
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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