Correlation Between Menora Miv and Nextferm Technologies
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Nextferm Technologies 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 Nextferm Technologies 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 Nextferm Technologies, you can compare the effects of market volatilities on Menora Miv and Nextferm Technologies 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 Nextferm Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Nextferm Technologies.
Diversification Opportunities for Menora Miv and Nextferm Technologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Menora and Nextferm is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Nextferm Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextferm Technologies 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 Nextferm Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextferm Technologies has no effect on the direction of Menora Miv i.e., Menora Miv and Nextferm Technologies go up and down completely randomly.
Pair Corralation between Menora Miv and Nextferm Technologies
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 0.33 times more return on investment than Nextferm Technologies. However, Menora Miv Hld is 3.05 times less risky than Nextferm Technologies. It trades about 0.16 of its potential returns per unit of risk. Nextferm Technologies is currently generating about -0.04 per unit of risk. If you would invest 725,822 in Menora Miv Hld on September 12, 2024 and sell it today you would earn a total of 754,178 from holding Menora Miv Hld or generate 103.91% 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. Nextferm Technologies
Performance |
| Timeline |
| Menora Miv Hld |
| Nextferm Technologies |
Menora Miv and Nextferm Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Nextferm Technologies
The main advantage of trading using opposite Menora Miv and Nextferm Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Nextferm Technologies 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 Nextferm Technologies will offset losses from the drop in Nextferm Technologies' 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 |
| Nextferm Technologies vs. Strauss Group | Nextferm Technologies vs. Kerur Holdings | Nextferm Technologies vs. Willy Food | Nextferm Technologies vs. Millennium Food Tech LP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |