Correlation Between Telsys and Mivne Real

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

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

Diversification Opportunities for Telsys and Mivne Real

0.5

Correlation Coefficient

Telsys  Mivne Real

Very weak diversification

The 3 months correlation between Telsys and Mivne is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Telsys 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 Telsys 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 Telsys 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 Telsys i.e., Telsys and Mivne Real go up and down completely randomly.

Pair Corralation between Telsys and Mivne Real

Assuming the 90 days trading horizon Telsys is expected to generate 1.28 times more return on investment than Mivne Real. However, Telsys is 1.28 times more volatile than Mivne Real Estate. It trades about 0.07 of its potential returns per unit of risk. Mivne Real Estate is currently generating about 0.01 per unit of risk. If you would invest  1,696,854  in Telsys on November 29, 2024 and sell it today you would earn a total of  97,146  from holding Telsys or generate 5.73% return on investment over 90 days.

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

Telsys  vs.  Mivne Real Estate

Telsys

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Telsys are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Telsys may actually be approaching a critical reversion point that can send shares even higher in March 2025.

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 somewhat strong basic indicators, Mivne Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Telsys and Mivne Real

The main advantage of trading using opposite Telsys and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telsys 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 Telsys 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.