Correlation Between Mirland Development and Gazit Globe
Can any of the company-specific risk be diversified away by investing in both Mirland Development and Gazit Globe 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 Mirland Development and Gazit Globe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirland Development and Gazit Globe, you can compare the effects of market volatilities on Mirland Development and Gazit Globe 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 Mirland Development with a short position of Gazit Globe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirland Development and Gazit Globe.
Diversification Opportunities for Mirland Development and Gazit Globe
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirland and Gazit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mirland Development and Gazit Globe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gazit Globe and Mirland Development 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 Mirland Development are associated (or correlated) with Gazit Globe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gazit Globe has no effect on the direction of Mirland Development i.e., Mirland Development and Gazit Globe go up and down completely randomly.
Pair Corralation between Mirland Development and Gazit Globe
Assuming the 90 days trading horizon Mirland Development is expected to under-perform the Gazit Globe. In addition to that, Mirland Development is 1.72 times more volatile than Gazit Globe. It trades about -0.1 of its total potential returns per unit of risk. Gazit Globe is currently generating about -0.03 per unit of volatility. If you would invest 293,500 in Gazit Globe on December 30, 2023 and sell it today you would lose (179,500) from holding Gazit Globe or give up 61.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mirland Development vs. Gazit Globe
Performance |
Timeline |
Mirland Development |
Gazit Globe |
Mirland Development and Gazit Globe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mirland Development and Gazit Globe
The main advantage of trading using opposite Mirland Development and Gazit Globe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirland Development position performs unexpectedly, Gazit Globe 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 Gazit Globe will offset losses from the drop in Gazit Globe's long position.Mirland Development vs. Azrieli Group | Mirland Development vs. Melisron | Mirland Development vs. Amot Investments | Mirland Development vs. Mivne Real Estate |
Gazit Globe vs. Bank Leumi Le Israel | Gazit Globe vs. Mizrahi Tefahot | Gazit Globe vs. Israel Discount Bank | Gazit Globe vs. Migdal Insurance |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |