Correlation Between Migdal Insurance and YD More

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Migdal Insurance and YD More 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 Migdal Insurance and YD More into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Migdal Insurance and YD More Investments, you can compare the effects of market volatilities on Migdal Insurance and YD More 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 Migdal Insurance with a short position of YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Insurance and YD More.

Diversification Opportunities for Migdal Insurance and YD More

0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Migdal and MRIN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Insurance and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments and Migdal 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 Migdal Insurance are associated (or correlated) with YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Migdal Insurance i.e., Migdal Insurance and YD More go up and down completely randomly.

Pair Corralation between Migdal Insurance and YD More

Assuming the 90 days trading horizon Migdal Insurance is expected to generate 0.49 times more return on investment than YD More. However, Migdal Insurance is 2.05 times less risky than YD More. It trades about 0.52 of its potential returns per unit of risk. YD More Investments is currently generating about 0.06 per unit of risk. If you would invest  66,350  in Migdal Insurance on October 20, 2024 and sell it today you would earn a total of  6,980  from holding Migdal Insurance or generate 10.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Migdal Insurance  vs.  YD More Investments

 Performance 
       Timeline  
Migdal Insurance 

Risk-Adjusted Performance

28 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Migdal Insurance are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Migdal Insurance sustained solid returns over the last few months and may actually be approaching a breakup point.
YD More Investments 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in YD More Investments are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, YD More sustained solid returns over the last few months and may actually be approaching a breakup point.

Migdal Insurance and YD More Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Migdal Insurance and YD More

The main advantage of trading using opposite Migdal Insurance and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Insurance position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More's long position.
The idea behind Migdal Insurance and YD More 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.