Correlation Between Menora Miv and Israel Opportunity
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Israel Opportunity 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 Israel Opportunity 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 Israel Opportunity , you can compare the effects of market volatilities on Menora Miv and Israel Opportunity 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 Israel Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Israel Opportunity.
Diversification Opportunities for Menora Miv and Israel Opportunity
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Menora and Israel is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Israel Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Opportunity 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 Israel Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Opportunity has no effect on the direction of Menora Miv i.e., Menora Miv and Israel Opportunity go up and down completely randomly.
Pair Corralation between Menora Miv and Israel Opportunity
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.69 times more return on investment than Israel Opportunity. However, Menora Miv Hld is 1.46 times less risky than Israel Opportunity. It trades about 0.36 of its potential returns per unit of risk. Israel Opportunity is currently generating about -0.02 per unit of risk. If you would invest 994,345 in Menora Miv Hld on August 29, 2024 and sell it today you would earn a total of 348,655 from holding Menora Miv Hld or generate 35.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Israel Opportunity
Performance |
| Timeline |
| Menora Miv Hld |
| Israel Opportunity |
Menora Miv and Israel Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Israel Opportunity
The main advantage of trading using opposite Menora Miv and Israel Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Israel Opportunity 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 Israel Opportunity will offset losses from the drop in Israel Opportunity'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 |
| Israel Opportunity vs. Lapidoth | Israel Opportunity vs. Ilex Medical | Israel Opportunity vs. Aerodrome Group | Israel Opportunity vs. Opal Balance |
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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