Correlation Between Mivne Real and Plaza Centers
Can any of the company-specific risk be diversified away by investing in both Mivne Real and Plaza Centers 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 Plaza Centers 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 Plaza Centers NV, you can compare the effects of market volatilities on Mivne Real and Plaza Centers 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 Plaza Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivne Real and Plaza Centers.
Diversification Opportunities for Mivne Real and Plaza Centers
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mivne and Plaza is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mivne Real Estate and Plaza Centers NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Centers NV 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 Plaza Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Centers NV has no effect on the direction of Mivne Real i.e., Mivne Real and Plaza Centers go up and down completely randomly.
Pair Corralation between Mivne Real and Plaza Centers
Assuming the 90 days trading horizon Mivne Real Estate is expected to generate 4.64 times more return on investment than Plaza Centers. However, Mivne Real is 4.64 times more volatile than Plaza Centers NV. It trades about 0.32 of its potential returns per unit of risk. Plaza Centers NV is currently generating about 0.25 per unit of risk. If you would invest 97,500 in Mivne Real Estate on August 25, 2024 and sell it today you would earn a total of 7,800 from holding Mivne Real Estate or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Mivne Real Estate vs. Plaza Centers NV
Performance |
| Timeline |
| Mivne Real Estate |
| Plaza Centers NV |
Mivne Real and Plaza Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivne Real and Plaza Centers
The main advantage of trading using opposite Mivne Real and Plaza Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivne Real position performs unexpectedly, Plaza Centers 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 Plaza Centers will offset losses from the drop in Plaza Centers' long position.| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
| Plaza Centers vs. GavYam Lands Corp | Plaza Centers vs. Ybox Real Estate | Plaza Centers vs. Brainsway | Plaza Centers vs. Mivne Real Estate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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