Correlation Between Menora Miv and Peninsula
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Peninsula 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 Peninsula 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 Peninsula Group, you can compare the effects of market volatilities on Menora Miv and Peninsula 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 Peninsula. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Peninsula.
Diversification Opportunities for Menora Miv and Peninsula
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Menora and Peninsula is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Peninsula Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Group 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 Peninsula. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Group has no effect on the direction of Menora Miv i.e., Menora Miv and Peninsula go up and down completely randomly.
Pair Corralation between Menora Miv and Peninsula
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 1.03 times more return on investment than Peninsula. However, Menora Miv is 1.03 times more volatile than Peninsula Group. It trades about 0.58 of its potential returns per unit of risk. Peninsula Group is currently generating about 0.33 per unit of risk. If you would invest 1,164,000 in Menora Miv Hld on September 1, 2024 and sell it today you would earn a total of 192,000 from holding Menora Miv Hld or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menora Miv Hld vs. Peninsula Group
Performance |
| Timeline |
| Menora Miv Hld |
| Peninsula Group |
Menora Miv and Peninsula Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and Peninsula
The main advantage of trading using opposite Menora Miv and Peninsula positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Peninsula 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 Peninsula will offset losses from the drop in Peninsula'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 |
| Peninsula vs. Opal Balance | Peninsula vs. Nawi Brothers Group | Peninsula vs. Mizrahi Tefahot | Peninsula vs. SR Accord |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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