Correlation Between Almogim Holdings and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Almogim Holdings and Menif Financial 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 Almogim Holdings and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almogim Holdings and Menif Financial Services, you can compare the effects of market volatilities on Almogim Holdings and Menif Financial 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 Almogim Holdings with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almogim Holdings and Menif Financial.
Diversification Opportunities for Almogim Holdings and Menif Financial
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Almogim and Menif is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Almogim Holdings and Menif Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menif Financial Services and Almogim Holdings 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 Almogim Holdings are associated (or correlated) with Menif Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menif Financial Services has no effect on the direction of Almogim Holdings i.e., Almogim Holdings and Menif Financial go up and down completely randomly.
Pair Corralation between Almogim Holdings and Menif Financial
Assuming the 90 days trading horizon Almogim Holdings is expected to generate 0.67 times more return on investment than Menif Financial. However, Almogim Holdings is 1.49 times less risky than Menif Financial. It trades about 0.48 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.03 per unit of risk. If you would invest 86,420 in Almogim Holdings on August 31, 2024 and sell it today you would earn a total of 12,630 from holding Almogim Holdings or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Almogim Holdings vs. Menif Financial Services
Performance |
| Timeline |
| Almogim Holdings |
| Menif Financial Services |
Almogim Holdings and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almogim Holdings and Menif Financial
The main advantage of trading using opposite Almogim Holdings and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almogim Holdings position performs unexpectedly, Menif Financial 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 Menif Financial will offset losses from the drop in Menif Financial's long position.| Almogim Holdings vs. Menif Financial Services | Almogim Holdings vs. RSL Electronics | Almogim Holdings vs. One Software Technologies | Almogim Holdings vs. Altshuler Shaham Financial |
| Menif Financial vs. Isracard | Menif Financial vs. Jacob Finance And | Menif Financial vs. Bull Trading And | Menif Financial vs. Blender Financial Technologies |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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