Correlation Between Menif Financial and Creative Media
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Creative Media 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 Menif Financial and Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menif Financial Services and Creative Media Community, you can compare the effects of market volatilities on Menif Financial and Creative Media 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 Menif Financial with a short position of Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Creative Media.
Diversification Opportunities for Menif Financial and Creative Media
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Menif and Creative is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community and Menif Financial 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 Menif Financial Services are associated (or correlated) with Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Menif Financial i.e., Menif Financial and Creative Media go up and down completely randomly.
Pair Corralation between Menif Financial and Creative Media
Assuming the 90 days trading horizon Menif Financial is expected to generate 13.15 times less return on investment than Creative Media. But when comparing it to its historical volatility, Menif Financial Services is 42.6 times less risky than Creative Media. It trades about 0.23 of its potential returns per unit of risk. Creative Media Community is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 87,440 in Creative Media Community on November 3, 2024 and sell it today you would lose (59,520) from holding Creative Media Community or give up 68.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. Creative Media Community
Performance |
| Timeline |
| Menif Financial Services |
| Creative Media Community |
Menif Financial and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Creative Media
The main advantage of trading using opposite Menif Financial and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media's long position.| Menif Financial vs. Sure Tech Investments LP | Menif Financial vs. MEITAV INVESTMENTS HOUSE | Menif Financial vs. Ram On Investments and | Menif Financial vs. Suny Cellular Communication |
| Creative Media vs. WhiteSmoke Software | Creative Media vs. Harel Insurance Investments | Creative Media vs. Multi Retail Group | Creative Media vs. Retailors |
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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