Correlation Between Foresight Autonomous and Mivne Real

Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and Mivne Real 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 Foresight Autonomous and Mivne Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foresight Autonomous Holdings and Mivne Real Estate, you can compare the effects of market volatilities on Foresight Autonomous and Mivne Real 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 Foresight Autonomous with a short position of Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Mivne Real.

Diversification Opportunities for Foresight Autonomous and Mivne Real

0.32

Correlation Coefficient

Foresight Autonomous  Mivne Real

Weak diversification

The 3 months correlation between Foresight and Mivne is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Mivne Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivne Real Estate and Foresight Autonomous 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 Foresight Autonomous Holdings are associated (or correlated) with Mivne Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivne Real Estate has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Mivne Real go up and down completely randomly.

Pair Corralation between Foresight Autonomous and Mivne Real

Assuming the 90 days trading horizon Foresight Autonomous Holdings is expected to under-perform the Mivne Real. In addition to that, Foresight Autonomous is 3.7 times more volatile than Mivne Real Estate. It trades about -0.24 of its total potential returns per unit of risk. Mivne Real Estate is currently generating about -0.11 per unit of volatility. If you would invest  105,857  in Mivne Real Estate on December 29, 2024 and sell it today you would lose (9,857) from holding Mivne Real Estate or give up 9.31% of portfolio value over 90 days.

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

Foresight Autonomous Holdings  vs.  Mivne Real Estate

Foresight Autonomous

Risk-Adjusted Performance

Very Weak

Over the last 90 days Foresight Autonomous Holdings 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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Mivne Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mivne Real Estate 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 Foresight Autonomous and Mivne Real

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

The idea behind Foresight Autonomous Holdings and Mivne Real Estate 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.