Correlation Between Mizrahi Tefahot and Delek
Can any of the company-specific risk be diversified away by investing in both Mizrahi Tefahot and Delek 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 Mizrahi Tefahot and Delek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mizrahi Tefahot and Delek Group, you can compare the effects of market volatilities on Mizrahi Tefahot and Delek 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 Mizrahi Tefahot with a short position of Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizrahi Tefahot and Delek.
Diversification Opportunities for Mizrahi Tefahot and Delek
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mizrahi and Delek is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mizrahi Tefahot and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group and Mizrahi Tefahot 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 Mizrahi Tefahot are associated (or correlated) with Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Mizrahi Tefahot i.e., Mizrahi Tefahot and Delek go up and down completely randomly.
Pair Corralation between Mizrahi Tefahot and Delek
Assuming the 90 days trading horizon Mizrahi Tefahot is expected to generate 2.02 times less return on investment than Delek. But when comparing it to its historical volatility, Mizrahi Tefahot is 1.09 times less risky than Delek. It trades about 0.08 of its potential returns per unit of risk. Delek Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,541,630 in Delek Group on September 12, 2024 and sell it today you would earn a total of 161,370 from holding Delek Group or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mizrahi Tefahot vs. Delek Group
Performance |
| Timeline |
| Mizrahi Tefahot |
| Delek Group |
Mizrahi Tefahot and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizrahi Tefahot and Delek
The main advantage of trading using opposite Mizrahi Tefahot and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizrahi Tefahot position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.| Mizrahi Tefahot vs. Bank Hapoalim | Mizrahi Tefahot vs. Israel Discount Bank | Mizrahi Tefahot vs. Bezeq Israeli Telecommunication | Mizrahi Tefahot vs. Elbit Systems |
| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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