Correlation Between Hawkins and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Menora Mivtachim Holdings, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Menora Mivtachim.
Diversification Opportunities for Hawkins and Menora Mivtachim
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hawkins and Menora is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins 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 Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and Menora Mivtachim go up and down completely randomly.
Pair Corralation between Hawkins and Menora Mivtachim
Given the investment horizon of 90 days Hawkins is expected to generate 1.94 times more return on investment than Menora Mivtachim. However, Hawkins is 1.94 times more volatile than Menora Mivtachim Holdings. It trades about 0.1 of its potential returns per unit of risk. Menora Mivtachim Holdings is currently generating about 0.13 per unit of risk. If you would invest 7,426 in Hawkins on October 25, 2024 and sell it today you would earn a total of 4,341 from holding Hawkins or generate 58.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.61% |
| Values | Daily Returns |
Hawkins vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| Hawkins |
| Menora Mivtachim Holdings |
Hawkins and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Menora Mivtachim
The main advantage of trading using opposite Hawkins and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| Menora Mivtachim vs. Vantage Drilling International | Menora Mivtachim vs. Nabors Industries | Menora Mivtachim vs. Noble plc | Menora Mivtachim vs. Anterix |
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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