Correlation Between Scope Metals and Meitav Dash
Can any of the company-specific risk be diversified away by investing in both Scope Metals and Meitav Dash 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 Scope Metals and Meitav Dash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scope Metals Group and Meitav Dash Investments, you can compare the effects of market volatilities on Scope Metals and Meitav Dash 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 Scope Metals with a short position of Meitav Dash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scope Metals and Meitav Dash.
Diversification Opportunities for Scope Metals and Meitav Dash
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Scope and Meitav is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and Meitav Dash Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Dash Investments and Scope Metals 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 Scope Metals Group are associated (or correlated) with Meitav Dash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Dash Investments has no effect on the direction of Scope Metals i.e., Scope Metals and Meitav Dash go up and down completely randomly.
Pair Corralation between Scope Metals and Meitav Dash
Assuming the 90 days trading horizon Scope Metals is expected to generate 1.5 times less return on investment than Meitav Dash. But when comparing it to its historical volatility, Scope Metals Group is 1.14 times less risky than Meitav Dash. It trades about 0.49 of its potential returns per unit of risk. Meitav Dash Investments is currently generating about 0.64 of returns per unit of risk over similar time horizon. If you would invest 204,400 in Meitav Dash Investments on September 12, 2024 and sell it today you would earn a total of 85,500 from holding Meitav Dash Investments or generate 41.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scope Metals Group vs. Meitav Dash Investments
Performance |
| Timeline |
| Scope Metals Group |
| Meitav Dash Investments |
Scope Metals and Meitav Dash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scope Metals and Meitav Dash
The main advantage of trading using opposite Scope Metals and Meitav Dash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals position performs unexpectedly, Meitav Dash 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 Dash will offset losses from the drop in Meitav Dash's long position.| Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
| Meitav Dash vs. Bank Hapoalim | Meitav Dash vs. Israel Discount Bank | Meitav Dash vs. Mizrahi Tefahot | Meitav Dash vs. Bezeq Israeli Telecommunication |
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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