Correlation Between Tel Aviv and MEITAV INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and MEITAV INVESTMENTS 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 MEITAV INVESTMENTS 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 MEITAV INVESTMENTS HOUSE, you can compare the effects of market volatilities on Tel Aviv and MEITAV INVESTMENTS 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 MEITAV INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and MEITAV INVESTMENTS.
Diversification Opportunities for Tel Aviv and MEITAV INVESTMENTS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tel and MEITAV is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and MEITAV INVESTMENTS HOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITAV INVESTMENTS HOUSE 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 MEITAV INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITAV INVESTMENTS HOUSE has no effect on the direction of Tel Aviv i.e., Tel Aviv and MEITAV INVESTMENTS go up and down completely randomly.
Pair Corralation between Tel Aviv and MEITAV INVESTMENTS
Assuming the 90 days trading horizon Tel Aviv is expected to generate 3.4 times less return on investment than MEITAV INVESTMENTS. But when comparing it to its historical volatility, Tel Aviv 35 is 1.87 times less risky than MEITAV INVESTMENTS. It trades about 0.08 of its potential returns per unit of risk. MEITAV INVESTMENTS HOUSE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 125,536 in MEITAV INVESTMENTS HOUSE on September 1, 2024 and sell it today you would earn a total of 143,564 from holding MEITAV INVESTMENTS HOUSE or generate 114.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. MEITAV INVESTMENTS HOUSE
Performance |
| Timeline |
Tel Aviv and MEITAV INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
MEITAV INVESTMENTS HOUSE
Pair trading matchups for MEITAV INVESTMENTS
Pair Trading with Tel Aviv and MEITAV INVESTMENTS
The main advantage of trading using opposite Tel Aviv and MEITAV INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, MEITAV INVESTMENTS 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 INVESTMENTS will offset losses from the drop in MEITAV INVESTMENTS'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 |
| MEITAV INVESTMENTS vs. Nice | MEITAV INVESTMENTS vs. The Gold Bond | MEITAV INVESTMENTS vs. Bank Leumi Le Israel | MEITAV INVESTMENTS vs. ICL Israel Chemicals |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |