Correlation Between Altshuler Shaham and Mivne Real

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

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

Diversification Opportunities for Altshuler Shaham and Mivne Real

0.82

Correlation Coefficient

Altshuler Shaham  Mivne Real

Very poor diversification

The 3 months correlation between Altshuler and Mivne is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial 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 Altshuler Shaham 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 Altshuler Shaham Financial 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 Altshuler Shaham i.e., Altshuler Shaham and Mivne Real go up and down completely randomly.

Pair Corralation between Altshuler Shaham and Mivne Real

Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to under-perform the Mivne Real. In addition to that, Altshuler Shaham is 1.28 times more volatile than Mivne Real Estate. It trades about -0.13 of its total potential returns per unit of risk. Mivne Real Estate is currently generating about 0.09 per unit of volatility. If you would invest  108,600  in Mivne Real Estate on September 29, 2024 and sell it today you would earn a total of  2,100  from holding Mivne Real Estate or generate 1.93% return on investment over 90 days.

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

Altshuler Shaham Financial  vs.  Mivne Real Estate

Altshuler Shaham Fin

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Altshuler Shaham sustained solid returns over the last few months and may actually be approaching a breakup point.

Mivne Real Estate

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mivne Real Estate are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mivne Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altshuler Shaham and Mivne Real

The main advantage of trading using opposite Altshuler Shaham and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham 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 Altshuler Shaham Financial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.