Correlation Between Oron Group and Meitav Trade
Can any of the company-specific risk be diversified away by investing in both Oron Group and Meitav Trade 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 Oron Group and Meitav Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oron Group Investments and Meitav Trade Inv, you can compare the effects of market volatilities on Oron Group and Meitav Trade 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 Oron Group with a short position of Meitav Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oron Group and Meitav Trade.
Diversification Opportunities for Oron Group and Meitav Trade
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oron and Meitav is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Oron Group Investments and Meitav Trade Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Trade Inv and Oron Group 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 Oron Group Investments are associated (or correlated) with Meitav Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Trade Inv has no effect on the direction of Oron Group i.e., Oron Group and Meitav Trade go up and down completely randomly.
Pair Corralation between Oron Group and Meitav Trade
Assuming the 90 days trading horizon Oron Group is expected to generate 1.12 times less return on investment than Meitav Trade. In addition to that, Oron Group is 1.41 times more volatile than Meitav Trade Inv. It trades about 0.16 of its total potential returns per unit of risk. Meitav Trade Inv is currently generating about 0.25 per unit of volatility. If you would invest 599.00 in Meitav Trade Inv on September 4, 2024 and sell it today you would earn a total of 491.00 from holding Meitav Trade Inv or generate 81.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.89% |
| Values | Daily Returns |
Oron Group Investments vs. Meitav Trade Inv
Performance |
| Timeline |
| Oron Group Investments |
| Meitav Trade Inv |
Oron Group and Meitav Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oron Group and Meitav Trade
The main advantage of trading using opposite Oron Group and Meitav Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oron Group position performs unexpectedly, Meitav Trade 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 Meitav Trade will offset losses from the drop in Meitav Trade's long position.| Oron Group vs. Shikun Binui | Oron Group vs. Ashtrom Group | Oron Group vs. Aura Investments | Oron Group vs. Shapir Engineering Industry |
| Meitav Trade vs. Batm Advanced Communications | Meitav Trade vs. YD More Investments | Meitav Trade vs. Analyst IMS Investment | Meitav Trade vs. Oron Group Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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