Correlation Between Mizrahi Tefahot and Apple
Can any of the company-specific risk be diversified away by investing in both Mizrahi Tefahot and Apple 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 Mizrahi Tefahot and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mizrahi Tefahot and Apple Inc, you can compare the effects of market volatilities on Mizrahi Tefahot and Apple 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 Mizrahi Tefahot with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizrahi Tefahot and Apple.
Diversification Opportunities for Mizrahi Tefahot and Apple
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mizrahi and Apple is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mizrahi Tefahot and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Mizrahi Tefahot 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 Mizrahi Tefahot are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Mizrahi Tefahot i.e., Mizrahi Tefahot and Apple go up and down completely randomly.
Pair Corralation between Mizrahi Tefahot and Apple
Assuming the 90 days trading horizon Mizrahi Tefahot is expected to under-perform the Apple. In addition to that, Mizrahi Tefahot is 1.71 times more volatile than Apple Inc. It trades about -0.08 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.07 per unit of volatility. If you would invest 17,085 in Apple Inc on January 25, 2024 and sell it today you would lose (395.00) from holding Apple Inc or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Mizrahi Tefahot vs. Apple Inc
Performance |
| Timeline |
| Mizrahi Tefahot |
| Apple Inc |
Mizrahi Tefahot and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizrahi Tefahot and Apple
The main advantage of trading using opposite Mizrahi Tefahot and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizrahi Tefahot position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Mizrahi Tefahot vs. Bank Leumi Le Israel | Mizrahi Tefahot vs. Bank Hapoalim | Mizrahi Tefahot vs. Israel Discount Bank | Mizrahi Tefahot vs. First International Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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