Correlation Between Menora Miv and Naphtha
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Naphtha 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 Naphtha 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 Naphtha, you can compare the effects of market volatilities on Menora Miv and Naphtha 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 Naphtha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Naphtha.
Diversification Opportunities for Menora Miv and Naphtha
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Menora and Naphtha is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Naphtha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naphtha 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 Naphtha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naphtha has no effect on the direction of Menora Miv i.e., Menora Miv and Naphtha go up and down completely randomly.
Pair Corralation between Menora Miv and Naphtha
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.79 times more return on investment than Naphtha. However, Menora Miv Hld is 1.26 times less risky than Naphtha. It trades about 0.1 of its potential returns per unit of risk. Naphtha is currently generating about 0.07 per unit of risk. If you would invest 728,915 in Menora Miv Hld on September 1, 2024 and sell it today you would earn a total of 627,085 from holding Menora Miv Hld or generate 86.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Naphtha
Performance |
| Timeline |
| Menora Miv Hld |
| Naphtha |
Menora Miv and Naphtha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Naphtha
The main advantage of trading using opposite Menora Miv and Naphtha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Naphtha 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 Naphtha will offset losses from the drop in Naphtha'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 |
| Naphtha vs. Migdal Insurance | Naphtha vs. Harel Insurance Investments | Naphtha vs. Delek Automotive Systems | Naphtha 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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