Correlation Between Menora Miv and Blue Square
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Blue Square 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 Blue Square 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 Blue Square Real, you can compare the effects of market volatilities on Menora Miv and Blue Square 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 Blue Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Blue Square.
Diversification Opportunities for Menora Miv and Blue Square
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Menora and Blue is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Blue Square Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Square Real 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 Blue Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Square Real has no effect on the direction of Menora Miv i.e., Menora Miv and Blue Square go up and down completely randomly.
Pair Corralation between Menora Miv and Blue Square
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.72 times more return on investment than Blue Square. However, Menora Miv Hld is 1.39 times less risky than Blue Square. It trades about 0.11 of its potential returns per unit of risk. Blue Square Real is currently generating about 0.08 per unit of risk. If you would invest 769,701 in Menora Miv Hld on September 2, 2024 and sell it today you would earn a total of 586,299 from holding Menora Miv Hld or generate 76.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Blue Square Real
Performance |
| Timeline |
| Menora Miv Hld |
| Blue Square Real |
Menora Miv and Blue Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Blue Square
The main advantage of trading using opposite Menora Miv and Blue Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Blue Square 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 Blue Square will offset losses from the drop in Blue Square'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 |
| Blue Square vs. Amot Investments | Blue Square vs. Big Shopping Centers | Blue Square vs. Alony Hetz Properties | Blue Square vs. Melisron |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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