Correlation Between Meitav Trade and GFC Green
Can any of the company-specific risk be diversified away by investing in both Meitav Trade and GFC Green 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 Trade and GFC Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meitav Trade Inv and GFC Green Fields, you can compare the effects of market volatilities on Meitav Trade and GFC Green 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 Trade with a short position of GFC Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Trade and GFC Green.
Diversification Opportunities for Meitav Trade and GFC Green
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meitav and GFC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Trade Inv and GFC Green Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFC Green Fields and Meitav Trade 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 Trade Inv are associated (or correlated) with GFC Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFC Green Fields has no effect on the direction of Meitav Trade i.e., Meitav Trade and GFC Green go up and down completely randomly.
Pair Corralation between Meitav Trade and GFC Green
Assuming the 90 days trading horizon Meitav Trade Inv is expected to generate 2.29 times more return on investment than GFC Green. However, Meitav Trade is 2.29 times more volatile than GFC Green Fields. It trades about 1.11 of its potential returns per unit of risk. GFC Green Fields is currently generating about 0.39 per unit of risk. If you would invest 138,400 in Meitav Trade Inv on December 4, 2024 and sell it today you would earn a total of 44,400 from holding Meitav Trade Inv or generate 32.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Trade Inv vs. GFC Green Fields
Performance |
| Timeline |
| Meitav Trade Inv |
| GFC Green Fields |
Meitav Trade and GFC Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Trade and GFC Green
The main advantage of trading using opposite Meitav Trade and GFC Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Trade position performs unexpectedly, GFC Green 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 GFC Green will offset losses from the drop in GFC Green's long position.| Meitav Trade vs. ICL Israel Chemicals | Meitav Trade vs. Polyram Plastic Industries | Meitav Trade vs. Oron Group Investments | Meitav Trade vs. Discount Investment Corp |
| GFC Green vs. Abra Information Technologies | GFC Green vs. Oron Group Investments | GFC Green vs. Meitav Dash Investments | GFC Green vs. MEITAV INVESTMENTS 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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