Correlation Between Migdal Mutual and International Business
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By analyzing existing cross correlation between Migdal Mutual Funds and International Business Machines, you can compare the effects of market volatilities on Migdal Mutual and International Business 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 Migdal Mutual with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Mutual and International Business.
Diversification Opportunities for Migdal Mutual and International Business
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Migdal and International is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Mutual Funds and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and Migdal Mutual 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 Migdal Mutual Funds are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Migdal Mutual i.e., Migdal Mutual and International Business go up and down completely randomly.
Pair Corralation between Migdal Mutual and International Business
Assuming the 90 days trading horizon Migdal Mutual Funds is expected to generate 1.26 times more return on investment than International Business. However, Migdal Mutual is 1.26 times more volatile than International Business Machines. It trades about 0.1 of its potential returns per unit of risk. International Business Machines is currently generating about -0.12 per unit of risk. If you would invest 253,400 in Migdal Mutual Funds on January 26, 2024 and sell it today you would earn a total of 4,600 from holding Migdal Mutual Funds or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Migdal Mutual Funds vs. International Business Machine
Performance |
| Timeline |
| Migdal Mutual Funds |
| International Business |
Migdal Mutual and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migdal Mutual and International Business
The main advantage of trading using opposite Migdal Mutual and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Mutual position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.| Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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