Correlation Between Meitav Trade and Jacob Finance
Can any of the company-specific risk be diversified away by investing in both Meitav Trade and Jacob Finance 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 Jacob Finance 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 Jacob Finance And, you can compare the effects of market volatilities on Meitav Trade and Jacob Finance 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 Jacob Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meitav Trade and Jacob Finance.
Diversification Opportunities for Meitav Trade and Jacob Finance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meitav and Jacob is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Meitav Trade Inv and Jacob Finance And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Finance And 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 Jacob Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Finance And has no effect on the direction of Meitav Trade i.e., Meitav Trade and Jacob Finance go up and down completely randomly.
Pair Corralation between Meitav Trade and Jacob Finance
Assuming the 90 days trading horizon Meitav Trade Inv is expected to generate 0.55 times more return on investment than Jacob Finance. However, Meitav Trade Inv is 1.81 times less risky than Jacob Finance. It trades about 0.63 of its potential returns per unit of risk. Jacob Finance And is currently generating about -0.07 per unit of risk. If you would invest 992.00 in Meitav Trade Inv on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Meitav Trade Inv or generate 15.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meitav Trade Inv vs. Jacob Finance And
Performance |
| Timeline |
| Meitav Trade Inv |
| Jacob Finance And |
Meitav Trade and Jacob Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meitav Trade and Jacob Finance
The main advantage of trading using opposite Meitav Trade and Jacob Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meitav Trade position performs unexpectedly, Jacob Finance 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 Jacob Finance will offset losses from the drop in Jacob Finance's long position.| Meitav Trade vs. Nice | Meitav Trade vs. The Gold Bond | Meitav Trade vs. Bank Leumi Le Israel | Meitav Trade vs. ICL Israel Chemicals |
| Jacob Finance vs. B Communications | Jacob Finance vs. Batm Advanced Communications | Jacob Finance vs. Mobile Max M | Jacob Finance vs. Migdal Insurance |
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 CEOs Directory module to screen CEOs from public companies around the world.
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