Correlation Between Tel Aviv and Multi Retail
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and Multi Retail 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 Tel Aviv and Multi Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tel Aviv 35 and Multi Retail Group, you can compare the effects of market volatilities on Tel Aviv and Multi Retail 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 Tel Aviv with a short position of Multi Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Multi Retail.
Diversification Opportunities for Tel Aviv and Multi Retail
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tel and Multi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Multi Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Retail Group and Tel Aviv 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 Tel Aviv 35 are associated (or correlated) with Multi Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Retail Group has no effect on the direction of Tel Aviv i.e., Tel Aviv and Multi Retail go up and down completely randomly.
Pair Corralation between Tel Aviv and Multi Retail
Assuming the 90 days trading horizon Tel Aviv 35 is expected to generate 0.3 times more return on investment than Multi Retail. However, Tel Aviv 35 is 3.29 times less risky than Multi Retail. It trades about 0.17 of its potential returns per unit of risk. Multi Retail Group is currently generating about 0.02 per unit of risk. If you would invest 220,397 in Tel Aviv 35 on September 1, 2024 and sell it today you would earn a total of 5,652 from holding Tel Aviv 35 or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Multi Retail Group
Performance |
| Timeline |
Tel Aviv and Multi Retail Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Multi Retail Group
Pair trading matchups for Multi Retail
Pair Trading with Tel Aviv and Multi Retail
The main advantage of trading using opposite Tel Aviv and Multi Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Multi Retail 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 Multi Retail will offset losses from the drop in Multi Retail's long position.| Tel Aviv vs. YH Dimri Construction | Tel Aviv vs. Electreon Wireless | Tel Aviv vs. B Yair Building | Tel Aviv vs. One Software Technologies |
| Multi Retail vs. Suny Cellular Communication | Multi Retail vs. Teuza A Fairchild | Multi Retail vs. Israel China Biotechnology | Multi Retail vs. B Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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