Correlation Between MediPress Health and Harel Insurance

Can any of the company-specific risk be diversified away by investing in both MediPress Health and Harel Insurance 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 MediPress Health and Harel Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MediPress Health Limited Partnership and Harel Insurance Investments, you can compare the effects of market volatilities on MediPress Health and Harel Insurance 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 MediPress Health with a short position of Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Harel Insurance.

Diversification Opportunities for MediPress Health and Harel Insurance

-0.64

Correlation Coefficient

MediPress Health  Harel Insurance

Excellent diversification

The 3 months correlation between MediPress and Harel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve and MediPress Health 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 MediPress Health Limited Partnership are associated (or correlated) with Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of MediPress Health i.e., MediPress Health and Harel Insurance go up and down completely randomly.

Pair Corralation between MediPress Health and Harel Insurance

If you would invest  9,310  in MediPress Health Limited Partnership on March 11, 2024 and sell it today you would earn a total of  0.00  from holding MediPress Health Limited Partnership or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.33%
Values	Daily Returns

MediPress Health Limited Partn  vs.  Harel Insurance Investments

MediPress Health Lim

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MediPress Health Limited Partnership are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MediPress Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Harel Insurance Inve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harel Insurance Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with MediPress Health and Harel Insurance

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

The idea behind MediPress Health Limited Partnership and Harel Insurance Investments 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.