Correlation Between Levinstein Prop and Menivim New
Can any of the company-specific risk be diversified away by investing in both Levinstein Prop and Menivim New 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 Levinstein Prop and Menivim New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinstein Prop and Menivim The New, you can compare the effects of market volatilities on Levinstein Prop and Menivim New 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 Levinstein Prop with a short position of Menivim New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinstein Prop and Menivim New.
Diversification Opportunities for Levinstein Prop and Menivim New
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Levinstein and Menivim is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Levinstein Prop and Menivim The New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menivim The New and Levinstein Prop 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 Levinstein Prop are associated (or correlated) with Menivim New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menivim The New has no effect on the direction of Levinstein Prop i.e., Levinstein Prop and Menivim New go up and down completely randomly.
Pair Corralation between Levinstein Prop and Menivim New
Assuming the 90 days trading horizon Levinstein Prop is expected to generate 1.72 times more return on investment than Menivim New. However, Levinstein Prop is 1.72 times more volatile than Menivim The New. It trades about 0.59 of its potential returns per unit of risk. Menivim The New is currently generating about 0.26 per unit of risk. If you would invest 566,400 in Levinstein Prop on August 28, 2024 and sell it today you would earn a total of 163,600 from holding Levinstein Prop or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levinstein Prop vs. Menivim The New
Performance |
| Timeline |
| Levinstein Prop |
| Menivim The New |
Levinstein Prop and Menivim New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinstein Prop and Menivim New
The main advantage of trading using opposite Levinstein Prop and Menivim New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinstein Prop position performs unexpectedly, Menivim New 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 Menivim New will offset losses from the drop in Menivim New's long position.| Levinstein Prop vs. Israel Canada | Levinstein Prop vs. Delek Group | Levinstein Prop vs. Shikun Binui | Levinstein Prop vs. Israel Discount Bank |
| Menivim New vs. Sella Real Estate | Menivim New vs. Reit 1 | Menivim New vs. MeguREIT Israel | Menivim New vs. Azrieli Group |
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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