Correlation Between Menora Miv and Harel Insurance
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Harel Insurance 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 Harel Insurance 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 Harel Insurance Investments, you can compare the effects of market volatilities on Menora Miv and Harel Insurance 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 Harel Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Harel Insurance.
Diversification Opportunities for Menora Miv and Harel Insurance
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Menora and Harel is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Harel Insurance Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel Insurance Inve 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 Harel Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Insurance Inve has no effect on the direction of Menora Miv i.e., Menora Miv and Harel Insurance go up and down completely randomly.
Pair Corralation between Menora Miv and Harel Insurance
Assuming the 90 days trading horizon Menora Miv is expected to generate 1.09 times less return on investment than Harel Insurance. But when comparing it to its historical volatility, Menora Miv Hld is 1.19 times less risky than Harel Insurance. It trades about 0.14 of its potential returns per unit of risk. Harel Insurance Investments is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 266,538 in Harel Insurance Investments on August 29, 2024 and sell it today you would earn a total of 167,962 from holding Harel Insurance Investments or generate 63.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Menora Miv Hld vs. Harel Insurance Investments
Performance |
| Timeline |
| Menora Miv Hld |
| Harel Insurance Inve |
Menora Miv and Harel Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Harel Insurance
The main advantage of trading using opposite Menora Miv and Harel Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Harel Insurance 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 Harel Insurance will offset losses from the drop in Harel Insurance'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 |
| Harel Insurance vs. Elbit Systems | Harel Insurance vs. Discount Investment Corp | Harel Insurance vs. Clal Insurance Enterprises | Harel Insurance vs. AudioCodes |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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