Correlation Between Mizrahi Tefahot and Shaniv
Can any of the company-specific risk be diversified away by investing in both Mizrahi Tefahot and Shaniv 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 Shaniv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mizrahi Tefahot and Shaniv, you can compare the effects of market volatilities on Mizrahi Tefahot and Shaniv 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 Shaniv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizrahi Tefahot and Shaniv.
Diversification Opportunities for Mizrahi Tefahot and Shaniv
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mizrahi and Shaniv is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mizrahi Tefahot and Shaniv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaniv 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 Shaniv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaniv has no effect on the direction of Mizrahi Tefahot i.e., Mizrahi Tefahot and Shaniv go up and down completely randomly.
Pair Corralation between Mizrahi Tefahot and Shaniv
Assuming the 90 days trading horizon Mizrahi Tefahot is expected to generate 1.32 times less return on investment than Shaniv. But when comparing it to its historical volatility, Mizrahi Tefahot is 2.61 times less risky than Shaniv. It trades about 0.33 of its potential returns per unit of risk. Shaniv is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 47,900 in Shaniv on November 3, 2024 and sell it today you would earn a total of 4,200 from holding Shaniv or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mizrahi Tefahot vs. Shaniv
Performance |
| Timeline |
| Mizrahi Tefahot |
| Shaniv |
Mizrahi Tefahot and Shaniv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizrahi Tefahot and Shaniv
The main advantage of trading using opposite Mizrahi Tefahot and Shaniv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizrahi Tefahot position performs unexpectedly, Shaniv 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 Shaniv will offset losses from the drop in Shaniv's long position.| Mizrahi Tefahot vs. Bank Leumi Le Israel | Mizrahi Tefahot vs. Bank Hapoalim | Mizrahi Tefahot vs. Israel Discount Bank | Mizrahi Tefahot vs. First International Bank |
| Shaniv vs. Rapac Communication Infrastructure | Shaniv vs. Shufersal | Shaniv vs. Palram | Shaniv vs. Nawi Brothers Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |