Correlation Between MeguREIT Israel and Menivim New
Can any of the company-specific risk be diversified away by investing in both MeguREIT Israel 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 MeguREIT Israel and Menivim New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeguREIT Israel and Menivim The New, you can compare the effects of market volatilities on MeguREIT Israel 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 MeguREIT Israel with a short position of Menivim New. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeguREIT Israel and Menivim New.
Diversification Opportunities for MeguREIT Israel and Menivim New
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MeguREIT and Menivim is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding MeguREIT Israel 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 MeguREIT Israel 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 MeguREIT Israel 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 MeguREIT Israel i.e., MeguREIT Israel and Menivim New go up and down completely randomly.
Pair Corralation between MeguREIT Israel and Menivim New
Assuming the 90 days trading horizon MeguREIT Israel is expected to generate 2.77 times more return on investment than Menivim New. However, MeguREIT Israel is 2.77 times more volatile than Menivim The New. It trades about 0.34 of its potential returns per unit of risk. Menivim The New is currently generating about 0.33 per unit of risk. If you would invest 42,490 in MeguREIT Israel on August 29, 2024 and sell it today you would earn a total of 11,510 from holding MeguREIT Israel or generate 27.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeguREIT Israel vs. Menivim The New
Performance |
| Timeline |
| MeguREIT Israel |
| Menivim The New |
MeguREIT Israel and Menivim New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeguREIT Israel and Menivim New
The main advantage of trading using opposite MeguREIT Israel and Menivim New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeguREIT Israel 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.| MeguREIT Israel vs. Nice | MeguREIT Israel vs. The Gold Bond | MeguREIT Israel vs. Bank Leumi Le Israel | MeguREIT Israel vs. ICL Israel Chemicals |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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