Correlation Between Harel Sal and Migdal Mutual

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

By analyzing existing cross correlation between Harel Sal SP and Migdal Mutual Funds, you can compare the effects of market volatilities on Harel Sal and Migdal Mutual 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 Harel Sal with a short position of Migdal Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and Migdal Mutual.

Diversification Opportunities for Harel Sal and Migdal Mutual

0.91

Correlation Coefficient

Harel Sal  Migdal Mutual

Almost no diversification

The 3 months correlation between Harel and Migdal is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal SP and Migdal Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Mutual Funds and Harel Sal 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 Harel Sal SP are associated (or correlated) with Migdal Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Mutual Funds has no effect on the direction of Harel Sal i.e., Harel Sal and Migdal Mutual go up and down completely randomly.

Pair Corralation between Harel Sal and Migdal Mutual

Assuming the 90 days trading horizon Harel Sal SP is expected to generate 5.56 times more return on investment than Migdal Mutual. However, Harel Sal is 5.56 times more volatile than Migdal Mutual Funds. It trades about 0.37 of its potential returns per unit of risk. Migdal Mutual Funds is currently generating about 0.39 per unit of risk. If you would invest  532,600  in Harel Sal SP on April 25, 2025 and sell it today you would earn a total of  72,700  from holding Harel Sal SP or generate 13.65% return on investment over 90 days.

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

Harel Sal SP  vs.  Migdal Mutual Funds

Harel Sal SP

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Harel Sal SP are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Harel Sal sustained solid returns over the last few months and may actually be approaching a breakup point.

Migdal Mutual Funds

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Migdal Mutual Funds are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Migdal Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Harel Sal and Migdal Mutual

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

The idea behind Harel Sal SP and Migdal Mutual Funds 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.