Correlation Between Harel Insurance and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Harel Insurance 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 Harel Insurance and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harel Insurance Investments and Menif Financial Services, you can compare the effects of market volatilities on Harel Insurance 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 Harel Insurance with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Menif Financial.
Diversification Opportunities for Harel Insurance and Menif Financial
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harel and Menif is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments 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 Harel Insurance 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 Harel Insurance Investments 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 Harel Insurance i.e., Harel Insurance and Menif Financial go up and down completely randomly.
Pair Corralation between Harel Insurance and Menif Financial
Assuming the 90 days trading horizon Harel Insurance is expected to generate 1.8 times less return on investment than Menif Financial. But when comparing it to its historical volatility, Harel Insurance Investments is 1.94 times less risky than Menif Financial. It trades about 0.31 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 160,700 in Menif Financial Services on October 24, 2024 and sell it today you would earn a total of 23,700 from holding Menif Financial Services or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Insurance Investments vs. Menif Financial Services
Performance |
| Timeline |
| Harel Insurance Inve |
| Menif Financial Services |
Harel Insurance and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Insurance and Menif Financial
The main advantage of trading using opposite Harel Insurance and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance 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.| Harel Insurance vs. Migdal Insurance | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. Bank Hapoalim | Harel Insurance vs. Bank Leumi Le Israel |
| Menif Financial vs. Magic Software Enterprises | Menif Financial vs. Amanet Management Systems | Menif Financial vs. Tedea Technological Development | Menif Financial vs. Nrgene 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |