Correlation Between Gan Shmuel and Mizrahi Tefahot
Can any of the company-specific risk be diversified away by investing in both Gan Shmuel and Mizrahi Tefahot 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 Gan Shmuel and Mizrahi Tefahot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gan Shmuel and Mizrahi Tefahot, you can compare the effects of market volatilities on Gan Shmuel and Mizrahi Tefahot 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 Gan Shmuel with a short position of Mizrahi Tefahot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Shmuel and Mizrahi Tefahot.
Diversification Opportunities for Gan Shmuel and Mizrahi Tefahot
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gan and Mizrahi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gan Shmuel and Mizrahi Tefahot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizrahi Tefahot and Gan Shmuel 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 Gan Shmuel are associated (or correlated) with Mizrahi Tefahot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mizrahi Tefahot has no effect on the direction of Gan Shmuel i.e., Gan Shmuel and Mizrahi Tefahot go up and down completely randomly.
Pair Corralation between Gan Shmuel and Mizrahi Tefahot
Assuming the 90 days trading horizon Gan Shmuel is expected to generate 2.48 times more return on investment than Mizrahi Tefahot. However, Gan Shmuel is 2.48 times more volatile than Mizrahi Tefahot. It trades about 0.38 of its potential returns per unit of risk. Mizrahi Tefahot is currently generating about -0.08 per unit of risk. If you would invest 170,151 in Gan Shmuel on January 25, 2024 and sell it today you would earn a total of 74,249 from holding Gan Shmuel or generate 43.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Shmuel vs. Mizrahi Tefahot
Performance |
| Timeline |
| Gan Shmuel |
| Mizrahi Tefahot |
Gan Shmuel and Mizrahi Tefahot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Shmuel and Mizrahi Tefahot
The main advantage of trading using opposite Gan Shmuel and Mizrahi Tefahot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Shmuel position performs unexpectedly, Mizrahi Tefahot 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 Mizrahi Tefahot will offset losses from the drop in Mizrahi Tefahot's long position.| Gan Shmuel vs. Rami Levi | Gan Shmuel vs. Bezeq Israeli Telecommunication | Gan Shmuel vs. Bank Hapoalim | Gan Shmuel vs. Bank Leumi Le Israel |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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