Correlation Between Harel Index and Migdal Mutual

Can any of the company-specific risk be diversified away by investing in both Harel Index 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 Index 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 Index Funds and Migdal Mutual Funds, you can compare the effects of market volatilities on Harel Index 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 Index with a short position of Migdal Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Index and Migdal Mutual.

Diversification Opportunities for Harel Index and Migdal Mutual

-0.87

Correlation Coefficient

Harel Index  Migdal Mutual

Pay attention - limited upside

The 3 months correlation between Harel and Migdal is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Harel Index Funds 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 Index 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 Index Funds 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 Index i.e., Harel Index and Migdal Mutual go up and down completely randomly.

Pair Corralation between Harel Index and Migdal Mutual

Assuming the 90 days trading horizon Harel Index Funds is expected to under-perform the Migdal Mutual. In addition to that, Harel Index is 7.93 times more volatile than Migdal Mutual Funds. It trades about -0.14 of its total potential returns per unit of risk. Migdal Mutual Funds is currently generating about 0.39 per unit of volatility. If you would invest  43,671  in Migdal Mutual Funds on April 25, 2025 and sell it today you would earn a total of  1,078  from holding Migdal Mutual Funds or generate 2.47% return on investment over 90 days.

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

Harel Index Funds  vs.  Migdal Mutual Funds

Harel Index Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harel Index Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

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 Index and Migdal Mutual

The main advantage of trading using opposite Harel Index and Migdal Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Index 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 Index Funds 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.