Correlation Between MeguREIT Israel and Intel
Can any of the company-specific risk be diversified away by investing in both MeguREIT Israel and Intel 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 MeguREIT Israel and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeguREIT Israel and Intel, you can compare the effects of market volatilities on MeguREIT Israel and Intel 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 MeguREIT Israel with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeguREIT Israel and Intel.
Diversification Opportunities for MeguREIT Israel and Intel
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MeguREIT and Intel is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MeguREIT Israel and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and MeguREIT Israel 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 MeguREIT Israel are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of MeguREIT Israel i.e., MeguREIT Israel and Intel go up and down completely randomly.
Pair Corralation between MeguREIT Israel and Intel
Assuming the 90 days trading horizon MeguREIT Israel is expected to generate 1.36 times more return on investment than Intel. However, MeguREIT Israel is 1.36 times more volatile than Intel. It trades about -0.2 of its potential returns per unit of risk. Intel is currently generating about -0.34 per unit of risk. If you would invest 46,670 in MeguREIT Israel on January 26, 2024 and sell it today you would lose (5,390) from holding MeguREIT Israel or give up 11.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
MeguREIT Israel vs. Intel
Performance |
| Timeline |
| MeguREIT Israel |
| Intel |
MeguREIT Israel and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeguREIT Israel and Intel
The main advantage of trading using opposite MeguREIT Israel and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeguREIT Israel position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| MeguREIT Israel vs. Nice | MeguREIT Israel vs. Bank Leumi Le Israel | MeguREIT Israel vs. ICL Israel Chemicals | MeguREIT Israel vs. Mizrahi Tefahot |
| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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