Correlation Between Bezeq Israeli and Menora Miv
Can any of the company-specific risk be diversified away by investing in both Bezeq Israeli and Menora Miv 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 Bezeq Israeli and Menora Miv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bezeq Israeli Telecommunication and Menora Miv Hld, you can compare the effects of market volatilities on Bezeq Israeli and Menora Miv 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 Bezeq Israeli with a short position of Menora Miv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bezeq Israeli and Menora Miv.
Diversification Opportunities for Bezeq Israeli and Menora Miv
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bezeq and Menora is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bezeq Israeli Telecommunicatio and Menora Miv Hld in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Miv Hld and Bezeq Israeli 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 Bezeq Israeli Telecommunication are associated (or correlated) with Menora Miv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Miv Hld has no effect on the direction of Bezeq Israeli i.e., Bezeq Israeli and Menora Miv go up and down completely randomly.
Pair Corralation between Bezeq Israeli and Menora Miv
Assuming the 90 days trading horizon Bezeq Israeli is expected to generate 1.79 times less return on investment than Menora Miv. In addition to that, Bezeq Israeli is 1.07 times more volatile than Menora Miv Hld. It trades about 0.34 of its total potential returns per unit of risk. Menora Miv Hld is currently generating about 0.66 per unit of volatility. If you would invest 1,137,000 in Menora Miv Hld on August 31, 2024 and sell it today you would earn a total of 219,000 from holding Menora Miv Hld or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bezeq Israeli Telecommunicatio vs. Menora Miv Hld
Performance |
| Timeline |
| Bezeq Israeli Teleco |
| Menora Miv Hld |
Bezeq Israeli and Menora Miv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bezeq Israeli and Menora Miv
The main advantage of trading using opposite Bezeq Israeli and Menora Miv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bezeq Israeli position performs unexpectedly, Menora Miv 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 Miv will offset losses from the drop in Menora Miv's long position.| Bezeq Israeli vs. Bank Leumi Le Israel | Bezeq Israeli vs. Teva Pharmaceutical Industries | Bezeq Israeli vs. Bank Hapoalim | Bezeq Israeli vs. Elbit Systems |
| Menora Miv vs. Harel Insurance Investments | Menora Miv vs. Migdal Insurance | Menora Miv vs. Clal Insurance Enterprises | Menora Miv vs. The Phoenix Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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