Correlation Between Blender Financial and MEITAV INVESTMENTS

Can any of the company-specific risk be diversified away by investing in both Blender Financial and MEITAV INVESTMENTS 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 Blender Financial and MEITAV INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blender Financial Technologies and MEITAV INVESTMENTS HOUSE, you can compare the effects of market volatilities on Blender Financial and MEITAV INVESTMENTS 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 Blender Financial with a short position of MEITAV INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blender Financial and MEITAV INVESTMENTS.

Diversification Opportunities for Blender Financial and MEITAV INVESTMENTS

-0.36

Correlation Coefficient

Blender Financial  MEITAV INVESTMENTS

Very good diversification

The 3 months correlation between Blender and MEITAV is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blender Financial Technologies and MEITAV INVESTMENTS HOUSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITAV INVESTMENTS HOUSE and Blender Financial 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 Blender Financial Technologies are associated (or correlated) with MEITAV INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITAV INVESTMENTS HOUSE has no effect on the direction of Blender Financial i.e., Blender Financial and MEITAV INVESTMENTS go up and down completely randomly.

Pair Corralation between Blender Financial and MEITAV INVESTMENTS

Assuming the 90 days trading horizon Blender Financial Technologies is expected to under-perform the MEITAV INVESTMENTS. In addition to that, Blender Financial is 1.29 times more volatile than MEITAV INVESTMENTS HOUSE. It trades about -0.31 of its total potential returns per unit of risk. MEITAV INVESTMENTS HOUSE is currently generating about -0.26 per unit of volatility. If you would invest  175,100  in MEITAV INVESTMENTS HOUSE on February 3, 2024 and sell it today you would lose (10,900) from holding MEITAV INVESTMENTS HOUSE or give up 6.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blender Financial Technologies  vs.  MEITAV INVESTMENTS HOUSE

Blender Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blender Financial Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

MEITAV INVESTMENTS HOUSE

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MEITAV INVESTMENTS HOUSE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MEITAV INVESTMENTS may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Blender Financial and MEITAV INVESTMENTS

The main advantage of trading using opposite Blender Financial and MEITAV INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blender Financial position performs unexpectedly, MEITAV INVESTMENTS 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 MEITAV INVESTMENTS will offset losses from the drop in MEITAV INVESTMENTS's long position.

The idea behind Blender Financial Technologies and MEITAV INVESTMENTS HOUSE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.