Correlation Between Mivne Real and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Mivne Real and Multi Retail 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 Mivne Real and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mivne Real Estate and Multi Retail Group, you can compare the effects of market volatilities on Mivne Real and Multi Retail 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 Mivne Real with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivne Real and Multi Retail.
Diversification Opportunities for Mivne Real and Multi Retail
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mivne and Multi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mivne Real Estate and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group and Mivne Real 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 Mivne Real Estate are associated (or correlated) with Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Mivne Real i.e., Mivne Real and Multi Retail go up and down completely randomly.
Pair Corralation between Mivne Real and Multi Retail
Assuming the 90 days trading horizon Mivne Real is expected to generate 197.18 times less return on investment than Multi Retail. But when comparing it to its historical volatility, Mivne Real Estate is 2.14 times less risky than Multi Retail. It trades about 0.0 of its potential returns per unit of risk. Multi Retail Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 24,210 in Multi Retail Group on August 25, 2024 and sell it today you would earn a total of 87,890 from holding Multi Retail Group or generate 363.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.42% |
| Values | Daily Returns |
Mivne Real Estate vs. Multi Retail Group
Performance |
| Timeline |
| Mivne Real Estate |
| Multi Retail Group |
Mivne Real and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivne Real and Multi Retail
The main advantage of trading using opposite Mivne Real and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivne Real position performs unexpectedly, Multi Retail 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 Multi Retail will offset losses from the drop in Multi Retail's long position.| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
| Multi Retail vs. Brainsway | Multi Retail vs. Mivne Real Estate | Multi Retail vs. Photomyne | Multi Retail 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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