Correlation Between Meitav Dash and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Sure Tech 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 Sure Tech 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 Sure Tech Investments LP, you can compare the effects of market volatilities on Meitav Dash and Sure Tech 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 Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Sure Tech.
Diversification Opportunities for Meitav Dash and Sure Tech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meitav and Sure is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Meitav Dash i.e., Meitav Dash and Sure Tech go up and down completely randomly.
Pair Corralation between Meitav Dash and Sure Tech
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.98 times more return on investment than Sure Tech. However, Meitav Dash Investments is 1.02 times less risky than Sure Tech. It trades about 0.76 of its potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.21 per unit of risk. If you would invest 191,200 in Meitav Dash Investments on August 25, 2024 and sell it today you would earn a total of 48,800 from holding Meitav Dash Investments or generate 25.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Dash Investments vs. Sure Tech Investments LP
Performance |
| Timeline |
| Meitav Dash Investments |
| Sure Tech Investments |
Meitav Dash and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Sure Tech
The main advantage of trading using opposite Meitav Dash and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| Meitav Dash vs. One Software Technologies | Meitav Dash vs. YH Dimri Construction | Meitav Dash vs. Suny Cellular Communication | Meitav Dash vs. First International Bank |
| Sure Tech vs. Altshuler Shaham Financial | Sure Tech vs. Generation Capital | Sure Tech vs. Meitav Dash Investments | Sure Tech vs. IBI Inv House |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |