Correlation Between MEITAV INVESTMENTS and Identi Healthcare

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

By analyzing existing cross correlation between MEITAV INVESTMENTS HOUSE and Identi Healthcare, you can compare the effects of market volatilities on MEITAV INVESTMENTS and Identi Healthcare 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 MEITAV INVESTMENTS with a short position of Identi Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITAV INVESTMENTS and Identi Healthcare.

Diversification Opportunities for MEITAV INVESTMENTS and Identi Healthcare

-0.53

Correlation Coefficient

MEITAV INVESTMENTS  Identi Healthcare

Excellent diversification

The 3 months correlation between MEITAV and Identi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MEITAV INVESTMENTS HOUSE and Identi Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identi Healthcare and MEITAV INVESTMENTS 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 MEITAV INVESTMENTS HOUSE are associated (or correlated) with Identi Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identi Healthcare has no effect on the direction of MEITAV INVESTMENTS i.e., MEITAV INVESTMENTS and Identi Healthcare go up and down completely randomly.

Pair Corralation between MEITAV INVESTMENTS and Identi Healthcare

Assuming the 90 days trading horizon MEITAV INVESTMENTS is expected to generate 1.41 times less return on investment than Identi Healthcare. But when comparing it to its historical volatility, MEITAV INVESTMENTS HOUSE is 6.55 times less risky than Identi Healthcare. It trades about 0.36 of its potential returns per unit of risk. Identi Healthcare is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  12,150  in Identi Healthcare on September 22, 2024 and sell it today you would earn a total of  5,490  from holding Identi Healthcare or generate 45.19% return on investment over 90 days.

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

MEITAV INVESTMENTS HOUSE  vs.  Identi Healthcare

MEITAV INVESTMENTS HOUSE

Risk-Adjusted Performance

37 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in MEITAV INVESTMENTS HOUSE are ranked lower than 37 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MEITAV INVESTMENTS sustained solid returns over the last few months and may actually be approaching a breakup point.

Identi Healthcare

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Identi Healthcare are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Identi Healthcare sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEITAV INVESTMENTS and Identi Healthcare

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

The idea behind MEITAV INVESTMENTS HOUSE and Identi Healthcare 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.