Correlation Between Estee Lauder and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both Estee Lauder 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 Estee Lauder and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estee Lauder Companies and Menora Mivtachim Holdings, you can compare the effects of market volatilities on Estee Lauder 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 Estee Lauder with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and Menora Mivtachim.
Diversification Opportunities for Estee Lauder and Menora Mivtachim
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Estee and Menora is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies 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 Estee Lauder 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 Estee Lauder Companies 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 Estee Lauder i.e., Estee Lauder and Menora Mivtachim go up and down completely randomly.
Pair Corralation between Estee Lauder and Menora Mivtachim
If you would invest 7,357 in Estee Lauder Companies on November 6, 2024 and sell it today you would earn a total of 986.00 from holding Estee Lauder Companies or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Estee Lauder Companies vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| Estee Lauder Companies |
| Menora Mivtachim Holdings |
Estee Lauder and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and Menora Mivtachim
The main advantage of trading using opposite Estee Lauder and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder 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.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty Inc |
| Menora Mivtachim vs. NN Group NV | Menora Mivtachim vs. Swiss Life Holding | Menora Mivtachim vs. PICC Property and | Menora Mivtachim vs. AXA SA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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