Correlation Between Menora Miv and Global Knafaim
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Global Knafaim 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 Global Knafaim 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 Global Knafaim Leasing, you can compare the effects of market volatilities on Menora Miv and Global Knafaim 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 Global Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Global Knafaim.
Diversification Opportunities for Menora Miv and Global Knafaim
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Menora and Global is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Global Knafaim Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Knafaim Leasing 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 Global Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Knafaim Leasing has no effect on the direction of Menora Miv i.e., Menora Miv and Global Knafaim go up and down completely randomly.
Pair Corralation between Menora Miv and Global Knafaim
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.89 times more return on investment than Global Knafaim. However, Menora Miv Hld is 1.12 times less risky than Global Knafaim. It trades about 0.11 of its potential returns per unit of risk. Global Knafaim Leasing is currently generating about 0.04 per unit of risk. If you would invest 623,495 in Menora Miv Hld on August 29, 2024 and sell it today you would earn a total of 719,505 from holding Menora Miv Hld or generate 115.4% 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. Global Knafaim Leasing
Performance |
| Timeline |
| Menora Miv Hld |
| Global Knafaim Leasing |
Menora Miv and Global Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Global Knafaim
The main advantage of trading using opposite Menora Miv and Global Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Global Knafaim 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 Global Knafaim will offset losses from the drop in Global Knafaim'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 |
| Global Knafaim vs. Arad | Global Knafaim vs. Alony Hetz Properties | Global Knafaim vs. Danel | Global Knafaim vs. Airport City |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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