Correlation Between Allianz SE and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both Allianz SE and Menora Mivtachim 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 Allianz SE and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and Menora Mivtachim Holdings, you can compare the effects of market volatilities on Allianz SE and Menora Mivtachim 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 Allianz SE with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and Menora Mivtachim.
Diversification Opportunities for Allianz SE and Menora Mivtachim
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allianz and Menora is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and Menora Mivtachim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Mivtachim Holdings and Allianz SE 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 Allianz SE are associated (or correlated) with Menora Mivtachim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Mivtachim Holdings has no effect on the direction of Allianz SE i.e., Allianz SE and Menora Mivtachim go up and down completely randomly.
Pair Corralation between Allianz SE and Menora Mivtachim
Assuming the 90 days horizon Allianz SE is expected to generate 2.31 times more return on investment than Menora Mivtachim. However, Allianz SE is 2.31 times more volatile than Menora Mivtachim Holdings. It trades about 0.05 of its potential returns per unit of risk. Menora Mivtachim Holdings is currently generating about 0.1 per unit of risk. If you would invest 20,794 in Allianz SE on October 26, 2024 and sell it today you would earn a total of 11,105 from holding Allianz SE or generate 53.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.38% |
| Values | Daily Returns |
Allianz SE vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| Allianz SE |
| Menora Mivtachim Holdings |
Allianz SE and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and Menora Mivtachim
The main advantage of trading using opposite Allianz SE and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, Menora Mivtachim 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 Menora Mivtachim will offset losses from the drop in Menora Mivtachim's long position.| Allianz SE vs. Assicurazioni Generali SpA | Allianz SE vs. AXA SA | Allianz SE vs. Athene Holding | Allianz SE vs. Athene Holding |
| Menora Mivtachim vs. Berkshire Hathaway | Menora Mivtachim vs. Berkshire Hathaway | Menora Mivtachim vs. Allianz SE | Menora Mivtachim vs. Zurich Insurance Group |
Check out your portfolio center.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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