Correlation Between OPC Energy and Mizrahi Tefahot
Can any of the company-specific risk be diversified away by investing in both OPC Energy 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 OPC Energy and Mizrahi Tefahot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPC Energy and Mizrahi Tefahot, you can compare the effects of market volatilities on OPC Energy 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 OPC Energy with a short position of Mizrahi Tefahot. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPC Energy and Mizrahi Tefahot.
Diversification Opportunities for OPC Energy and Mizrahi Tefahot
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between OPC and Mizrahi is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding OPC Energy and Mizrahi Tefahot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mizrahi Tefahot and OPC Energy 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 OPC Energy 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 OPC Energy i.e., OPC Energy and Mizrahi Tefahot go up and down completely randomly.
Pair Corralation between OPC Energy and Mizrahi Tefahot
Assuming the 90 days trading horizon OPC Energy is expected to under-perform the Mizrahi Tefahot. But the stock apears to be less risky and, when comparing its historical volatility, OPC Energy is 2.26 times less risky than Mizrahi Tefahot. The stock trades about -0.44 of its potential returns per unit of risk. The Mizrahi Tefahot is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,323,000 in Mizrahi Tefahot on January 17, 2024 and sell it today you would earn a total of 0.00 from holding Mizrahi Tefahot or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPC Energy vs. Mizrahi Tefahot
Performance |
| Timeline |
| OPC Energy |
| Mizrahi Tefahot |
OPC Energy and Mizrahi Tefahot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPC Energy and Mizrahi Tefahot
The main advantage of trading using opposite OPC Energy and Mizrahi Tefahot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPC Energy 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.| OPC Energy vs. Doral Group Renewable | OPC Energy vs. Elbit Systems | OPC Energy vs. Electreon Wireless | OPC Energy vs. Delek Group |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |