Correlation Between Delek Automotive and Menora Miv
Can any of the company-specific risk be diversified away by investing in both Delek Automotive 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 Delek Automotive and Menora Miv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Automotive Systems and Menora Miv Hld, you can compare the effects of market volatilities on Delek Automotive 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 Delek Automotive with a short position of Menora Miv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Automotive and Menora Miv.
Diversification Opportunities for Delek Automotive and Menora Miv
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and Menora is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Delek Automotive Systems 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 Delek Automotive 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 Delek Automotive Systems 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 Delek Automotive i.e., Delek Automotive and Menora Miv go up and down completely randomly.
Pair Corralation between Delek Automotive and Menora Miv
Assuming the 90 days trading horizon Delek Automotive is expected to generate 1.43 times less return on investment than Menora Miv. In addition to that, Delek Automotive is 1.49 times more volatile than Menora Miv Hld. It trades about 0.27 of its total potential returns per unit of risk. Menora Miv Hld is currently generating about 0.58 per unit of volatility. If you would invest 1,164,000 in Menora Miv Hld on September 1, 2024 and sell it today you would earn a total of 192,000 from holding Menora Miv Hld or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Automotive Systems vs. Menora Miv Hld
Performance |
| Timeline |
| Delek Automotive Systems |
| Menora Miv Hld |
Delek Automotive and Menora Miv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Automotive and Menora Miv
The main advantage of trading using opposite Delek Automotive and Menora Miv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Automotive 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.| Delek Automotive vs. El Al Israel | Delek Automotive vs. Magic Software Enterprises | Delek Automotive vs. Neto Malinda | Delek Automotive vs. Orbit Technologies |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |