Correlation Between Mivne Real and Automatic Bank
Can any of the company-specific risk be diversified away by investing in both Mivne Real and Automatic Bank 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 Automatic Bank 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 Automatic Bank Services, you can compare the effects of market volatilities on Mivne Real and Automatic Bank 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 Automatic Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivne Real and Automatic Bank.
Diversification Opportunities for Mivne Real and Automatic Bank
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mivne and Automatic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mivne Real Estate and Automatic Bank Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Bank Services 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 Automatic Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Bank Services has no effect on the direction of Mivne Real i.e., Mivne Real and Automatic Bank go up and down completely randomly.
Pair Corralation between Mivne Real and Automatic Bank
Assuming the 90 days trading horizon Mivne Real is expected to generate 2.9 times less return on investment than Automatic Bank. But when comparing it to its historical volatility, Mivne Real Estate is 1.07 times less risky than Automatic Bank. It trades about 0.03 of its potential returns per unit of risk. Automatic Bank Services is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 154,040 in Automatic Bank Services on September 2, 2024 and sell it today you would earn a total of 59,560 from holding Automatic Bank Services or generate 38.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Mivne Real Estate vs. Automatic Bank Services
Performance |
| Timeline |
| Mivne Real Estate |
| Automatic Bank Services |
Mivne Real and Automatic Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mivne Real and Automatic Bank
The main advantage of trading using opposite Mivne Real and Automatic Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mivne Real position performs unexpectedly, Automatic Bank 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 Automatic Bank will offset losses from the drop in Automatic Bank's long position.| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
| Automatic Bank vs. Telsys | Automatic Bank vs. EN Shoham Business | Automatic Bank vs. Brainsway | Automatic Bank 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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