Correlation Between Menora Miv and Bio View
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Bio View 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 Menora Miv and Bio View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menora Miv Hld and Bio View, you can compare the effects of market volatilities on Menora Miv and Bio View 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 Menora Miv with a short position of Bio View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Bio View.
Diversification Opportunities for Menora Miv and Bio View
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Menora and Bio is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Bio View in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio View and Menora Miv 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 Menora Miv Hld are associated (or correlated) with Bio View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio View has no effect on the direction of Menora Miv i.e., Menora Miv and Bio View go up and down completely randomly.
Pair Corralation between Menora Miv and Bio View
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.46 times more return on investment than Bio View. However, Menora Miv Hld is 2.15 times less risky than Bio View. It trades about 0.13 of its potential returns per unit of risk. Bio View is currently generating about 0.01 per unit of risk. If you would invest 945,914 in Menora Miv Hld on August 25, 2024 and sell it today you would earn a total of 358,086 from holding Menora Miv Hld or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Bio View
Performance |
| Timeline |
| Menora Miv Hld |
| Bio View |
Menora Miv and Bio View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Bio View
The main advantage of trading using opposite Menora Miv and Bio View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Bio View 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 Bio View will offset losses from the drop in Bio View's long position.| Menora Miv vs. Harel Insurance Investments | Menora Miv vs. Migdal Insurance | Menora Miv vs. Clal Insurance Enterprises | Menora Miv vs. The Phoenix Holdings |
| Bio View vs. Netz Hotels | Bio View vs. Migdal Insurance | Bio View vs. Harel Insurance Investments | Bio View vs. Menora Miv Hld |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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