Correlation Between My Size and Mizrahi Tefahot
Can any of the company-specific risk be diversified away by investing in both My Size 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 My Size and Mizrahi Tefahot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between My Size and Mizrahi Tefahot, you can compare the effects of market volatilities on My Size 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 My Size with a short position of Mizrahi Tefahot. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Size and Mizrahi Tefahot.
Diversification Opportunities for My Size and Mizrahi Tefahot
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between MYSZ and Mizrahi is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding My Size and Mizrahi Tefahot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizrahi Tefahot and My Size 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 My Size 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 My Size i.e., My Size and Mizrahi Tefahot go up and down completely randomly.
Pair Corralation between My Size and Mizrahi Tefahot
Assuming the 90 days trading horizon My Size is expected to under-perform the Mizrahi Tefahot. In addition to that, My Size is 2.2 times more volatile than Mizrahi Tefahot. It trades about -0.86 of its total potential returns per unit of risk. Mizrahi Tefahot is currently generating about -0.08 per unit of volatility. If you would invest 1,357,000 in Mizrahi Tefahot on January 25, 2024 and sell it today you would lose (50,000) from holding Mizrahi Tefahot or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.53% |
| Values | Daily Returns |
My Size vs. Mizrahi Tefahot
Performance |
| Timeline |
| My Size |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mizrahi Tefahot |
My Size and Mizrahi Tefahot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with My Size and Mizrahi Tefahot
The main advantage of trading using opposite My Size and Mizrahi Tefahot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if My Size 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.| My Size vs. One Software Technologies | My Size vs. Abra Information Technologies | My Size vs. Safe T Group | My Size vs. Ai Conversation Systems |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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