Correlation Between Tel Aviv and Maytronics
Can any of the company-specific risk be diversified away by investing in both Tel Aviv and Maytronics 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 Maytronics 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 Maytronics, you can compare the effects of market volatilities on Tel Aviv and Maytronics 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 Maytronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tel Aviv and Maytronics.
Diversification Opportunities for Tel Aviv and Maytronics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tel and Maytronics is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tel Aviv 35 and Maytronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maytronics 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 Maytronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maytronics has no effect on the direction of Tel Aviv i.e., Tel Aviv and Maytronics go up and down completely randomly.
Pair Corralation between Tel Aviv and Maytronics
Assuming the 90 days trading horizon Tel Aviv is expected to generate 2.71 times less return on investment than Maytronics. But when comparing it to its historical volatility, Tel Aviv 35 is 5.04 times less risky than Maytronics. It trades about 0.28 of its potential returns per unit of risk. Maytronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 97,500 in Maytronics on August 25, 2024 and sell it today you would earn a total of 9,500 from holding Maytronics or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tel Aviv 35 vs. Maytronics
Performance |
| Timeline |
Tel Aviv and Maytronics Volatility Contrast
Predicted Return Density |
| Returns |
Tel Aviv 35
Pair trading matchups for Tel Aviv
Maytronics
Pair trading matchups for Maytronics
Pair Trading with Tel Aviv and Maytronics
The main advantage of trading using opposite Tel Aviv and Maytronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tel Aviv position performs unexpectedly, Maytronics 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 Maytronics will offset losses from the drop in Maytronics' long position.| Tel Aviv vs. Technoplus Ventures | Tel Aviv vs. Silver Castle Holdings | Tel Aviv vs. Rapac Communication Infrastructure | Tel Aviv vs. Unicorn Technologies |
| Maytronics vs. Matrix | Maytronics vs. Elbit Systems | Maytronics vs. Enlight Renewable Energy | Maytronics vs. Hilan |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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