Correlation Between Big Shopping and MEITAV INVESTMENTS

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

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

Diversification Opportunities for Big Shopping and MEITAV INVESTMENTS

0.32

Correlation Coefficient

Big Shopping  MEITAV INVESTMENTS

Weak diversification

The 3 months correlation between Big and MEITAV is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Big Shopping Centers 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 Big Shopping 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 Big Shopping Centers 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 Big Shopping i.e., Big Shopping and MEITAV INVESTMENTS go up and down completely randomly.

Pair Corralation between Big Shopping and MEITAV INVESTMENTS

Assuming the 90 days trading horizon Big Shopping Centers is expected to under-perform the MEITAV INVESTMENTS. But the stock apears to be less risky and, when comparing its historical volatility, Big Shopping Centers is 1.57 times less risky than MEITAV INVESTMENTS. The stock trades about -0.05 of its potential returns per unit of risk. The MEITAV INVESTMENTS HOUSE is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  291,339  in MEITAV INVESTMENTS HOUSE on December 29, 2024 and sell it today you would earn a total of  149,661  from holding MEITAV INVESTMENTS HOUSE or generate 51.37% return on investment over 90 days.

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

Big Shopping Centers  vs.  MEITAV INVESTMENTS HOUSE

Big Shopping Centers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Big Shopping Centers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Big Shopping is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MEITAV INVESTMENTS HOUSE

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in MEITAV INVESTMENTS HOUSE are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MEITAV INVESTMENTS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Big Shopping and MEITAV INVESTMENTS

The main advantage of trading using opposite Big Shopping and MEITAV INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Shopping 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 Big Shopping Centers 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.