Correlation Between Mehadrin and Bank Leumi
Can any of the company-specific risk be diversified away by investing in both Mehadrin and Bank Leumi 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 Mehadrin and Bank Leumi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mehadrin and Bank Leumi Le Israel, you can compare the effects of market volatilities on Mehadrin and Bank Leumi 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 Mehadrin with a short position of Bank Leumi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mehadrin and Bank Leumi.
Diversification Opportunities for Mehadrin and Bank Leumi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mehadrin and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mehadrin and Bank Leumi Le-Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Leumi Le-Israel and Mehadrin 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 Mehadrin are associated (or correlated) with Bank Leumi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Leumi Le-Israel has no effect on the direction of Mehadrin i.e., Mehadrin and Bank Leumi go up and down completely randomly.
Pair Corralation between Mehadrin and Bank Leumi
Assuming the 90 days trading horizon Mehadrin is expected to under-perform the Bank Leumi. In addition to that, Mehadrin is 1.09 times more volatile than Bank Leumi Le Israel. It trades about -0.08 of its total potential returns per unit of risk. Bank Leumi Le Israel is currently generating about 0.19 per unit of volatility. If you would invest 269,000 in Bank Leumi Le Israel on December 20, 2023 and sell it today you would earn a total of 24,800 from holding Bank Leumi Le Israel or generate 9.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mehadrin vs. Bank Leumi Le-Israel
Performance |
Timeline |
Mehadrin |
Bank Leumi Le-Israel |
Mehadrin and Bank Leumi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mehadrin and Bank Leumi
The main advantage of trading using opposite Mehadrin and Bank Leumi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mehadrin position performs unexpectedly, Bank Leumi 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 Bank Leumi will offset losses from the drop in Bank Leumi's long position.Mehadrin vs. Amot Investments | Mehadrin vs. Multi Retail Group | Mehadrin vs. Libra Insurance | Mehadrin vs. Analyst IMS Investment |
Bank Leumi vs. IDI Insurance | Bank Leumi vs. Magic Software Enterprises | Bank Leumi vs. Harel Insurance Investments | Bank Leumi vs. Wesure Global Tech |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
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 | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |