Correlation Between Mivtach Shamir and Analyst IMS

Can any of the company-specific risk be diversified away by investing in both Mivtach Shamir and Analyst IMS 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 Mivtach Shamir and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mivtach Shamir and Analyst IMS Investment, you can compare the effects of market volatilities on Mivtach Shamir and Analyst IMS 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 Mivtach Shamir with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mivtach Shamir and Analyst IMS.

Diversification Opportunities for Mivtach Shamir and Analyst IMS

0.75

Correlation Coefficient

Mivtach Shamir  Analyst IMS

Poor diversification

The 3 months correlation between Mivtach and Analyst is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mivtach Shamir and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Mivtach Shamir 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 Mivtach Shamir are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Mivtach Shamir i.e., Mivtach Shamir and Analyst IMS go up and down completely randomly.

Pair Corralation between Mivtach Shamir and Analyst IMS

Assuming the 90 days trading horizon Mivtach Shamir is expected to generate 1.92 times more return on investment than Analyst IMS. However, Mivtach Shamir is 1.92 times more volatile than Analyst IMS Investment. It trades about 0.47 of its potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.11 per unit of risk. If you would invest  1,232,000  in Mivtach Shamir on February 16, 2024 and sell it today you would earn a total of  150,000  from holding Mivtach Shamir or generate 12.18% return on investment over 90 days.

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

Mivtach Shamir  vs.  Analyst IMS Investment

Mivtach Shamir

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mivtach Shamir are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mivtach Shamir may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Analyst IMS Investment

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Analyst IMS Investment are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Analyst IMS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mivtach Shamir and Analyst IMS

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

The idea behind Mivtach Shamir and Analyst IMS Investment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.