Correlation Between Menora Miv and SR Accord
Can any of the company-specific risk be diversified away by investing in both Menora Miv and SR Accord 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 SR Accord 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 SR Accord, you can compare the effects of market volatilities on Menora Miv and SR Accord 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 SR Accord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and SR Accord.
Diversification Opportunities for Menora Miv and SR Accord
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Menora and SRAC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and SR Accord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SR Accord 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 SR Accord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SR Accord has no effect on the direction of Menora Miv i.e., Menora Miv and SR Accord go up and down completely randomly.
Pair Corralation between Menora Miv and SR Accord
Assuming the 90 days trading horizon Menora Miv is expected to generate 1.1 times less return on investment than SR Accord. But when comparing it to its historical volatility, Menora Miv Hld is 1.58 times less risky than SR Accord. It trades about 0.33 of its potential returns per unit of risk. SR Accord is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 286,026 in SR Accord on August 31, 2024 and sell it today you would earn a total of 95,674 from holding SR Accord or generate 33.45% 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. SR Accord
Performance |
| Timeline |
| Menora Miv Hld |
| SR Accord |
Menora Miv and SR Accord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Miv and SR Accord
The main advantage of trading using opposite Menora Miv and SR Accord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, SR Accord 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 SR Accord will offset losses from the drop in SR Accord'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 |
| SR Accord vs. EN Shoham Business | SR Accord vs. Rani Zim Shopping | SR Accord vs. Mivtach Shamir | SR Accord vs. Accel Solutions Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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