Correlation Between Menora Miv and Brainsway
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Brainsway 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 Brainsway 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 Brainsway, you can compare the effects of market volatilities on Menora Miv and Brainsway 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 Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Brainsway.
Diversification Opportunities for Menora Miv and Brainsway
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Menora and Brainsway is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway 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 Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of Menora Miv i.e., Menora Miv and Brainsway go up and down completely randomly.
Pair Corralation between Menora Miv and Brainsway
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.48 times more return on investment than Brainsway. However, Menora Miv Hld is 2.09 times less risky than Brainsway. It trades about 0.72 of its potential returns per unit of risk. Brainsway is currently generating about -0.04 per unit of risk. If you would invest 1,107,000 in Menora Miv Hld on August 29, 2024 and sell it today you would earn a total of 236,000 from holding Menora Miv Hld or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Brainsway
Performance |
| Timeline |
| Menora Miv Hld |
| Brainsway |
Menora Miv and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Brainsway
The main advantage of trading using opposite Menora Miv and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway'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 |
| Brainsway vs. Ilex Medical | Brainsway vs. First International Bank | Brainsway vs. Elbit Medical Technologies | Brainsway vs. RSL Electronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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