Correlation Between Libra Insurance and Migdal Insurance
Can any of the company-specific risk be diversified away by investing in both Libra Insurance and Migdal 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 Libra Insurance and Migdal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Libra Insurance and Migdal Insurance, you can compare the effects of market volatilities on Libra Insurance and Migdal 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 Libra Insurance with a short position of Migdal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libra Insurance and Migdal Insurance.
Diversification Opportunities for Libra Insurance and Migdal Insurance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Libra and Migdal is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Libra Insurance and Migdal Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Insurance and Libra Insurance 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 Libra Insurance are associated (or correlated) with Migdal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Insurance has no effect on the direction of Libra Insurance i.e., Libra Insurance and Migdal Insurance go up and down completely randomly.
Pair Corralation between Libra Insurance and Migdal Insurance
Assuming the 90 days trading horizon Libra Insurance is expected to generate 1.44 times more return on investment than Migdal Insurance. However, Libra Insurance is 1.44 times more volatile than Migdal Insurance. It trades about 0.18 of its potential returns per unit of risk. Migdal Insurance is currently generating about 0.02 per unit of risk. If you would invest 105,900 in Libra Insurance on December 29, 2024 and sell it today you would earn a total of 32,200 from holding Libra Insurance or generate 30.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Libra Insurance vs. Migdal Insurance
Performance |
Timeline |
Libra Insurance |
Migdal Insurance |
Libra Insurance and Migdal Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Libra Insurance and Migdal Insurance
The main advantage of trading using opposite Libra Insurance and Migdal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libra Insurance position performs unexpectedly, Migdal 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 Migdal Insurance will offset losses from the drop in Migdal Insurance's long position.Libra Insurance vs. Computer Direct | Libra Insurance vs. Clal Biotechnology Industries | Libra Insurance vs. WhiteSmoke Software | Libra Insurance vs. Bezeq Israeli Telecommunication |
Migdal Insurance vs. Harel Insurance Investments | Migdal Insurance vs. Clal Insurance Enterprises | Migdal Insurance vs. Bank Hapoalim | Migdal Insurance vs. Bank Leumi Le Israel |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |