Correlation Between Meitav Dash and Trendline
Can any of the company-specific risk be diversified away by investing in both Meitav Dash and Trendline 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 Trendline 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 Trendline, you can compare the effects of market volatilities on Meitav Dash and Trendline 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 Trendline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Dash and Trendline.
Diversification Opportunities for Meitav Dash and Trendline
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meitav and Trendline is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Dash Investments and Trendline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trendline 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 Trendline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trendline has no effect on the direction of Meitav Dash i.e., Meitav Dash and Trendline go up and down completely randomly.
Pair Corralation between Meitav Dash and Trendline
Assuming the 90 days trading horizon Meitav Dash Investments is expected to generate 0.59 times more return on investment than Trendline. However, Meitav Dash Investments is 1.69 times less risky than Trendline. It trades about 0.11 of its potential returns per unit of risk. Trendline is currently generating about -0.02 per unit of risk. If you would invest 113,000 in Meitav Dash Investments on September 4, 2024 and sell it today you would earn a total of 156,100 from holding Meitav Dash Investments or generate 138.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Meitav Dash Investments vs. Trendline
Performance |
| Timeline |
| Meitav Dash Investments |
| Trendline |
Meitav Dash and Trendline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Dash and Trendline
The main advantage of trading using opposite Meitav Dash and Trendline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Dash position performs unexpectedly, Trendline 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 Trendline will offset losses from the drop in Trendline's long position.| Meitav Dash vs. Harel Insurance Investments | Meitav Dash vs. More Mutual Funds | Meitav Dash vs. Scope Metals Group | Meitav Dash vs. Aura Investments |
| Trendline vs. Iargento Hi Tech | Trendline vs. Millennium Food Tech LP | Trendline vs. Harel Insurance Investments | Trendline vs. Payment Financial Technologies |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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