Correlation Between Menif Financial and IDI Insurance
Can any of the company-specific risk be diversified away by investing in both Menif Financial and IDI Insurance 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 IDI Insurance 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 IDI Insurance, you can compare the effects of market volatilities on Menif Financial and IDI Insurance 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 IDI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and IDI Insurance.
Diversification Opportunities for Menif Financial and IDI Insurance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Menif and IDI is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and IDI Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDI Insurance 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 IDI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDI Insurance has no effect on the direction of Menif Financial i.e., Menif Financial and IDI Insurance go up and down completely randomly.
Pair Corralation between Menif Financial and IDI Insurance
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 0.98 times more return on investment than IDI Insurance. However, Menif Financial Services is 1.02 times less risky than IDI Insurance. It trades about 0.12 of its potential returns per unit of risk. IDI Insurance is currently generating about 0.12 per unit of risk. If you would invest 78,509 in Menif Financial Services on November 27, 2024 and sell it today you would earn a total of 111,191 from holding Menif Financial Services or generate 141.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. IDI Insurance
Performance |
| Timeline |
| Menif Financial Services |
| IDI Insurance |
Menif Financial and IDI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and IDI Insurance
The main advantage of trading using opposite Menif Financial and IDI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, IDI Insurance 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 IDI Insurance will offset losses from the drop in IDI Insurance's long position.| Menif Financial vs. Elron Electronic Industries | Menif Financial vs. Epitomee Medical | Menif Financial vs. MediPress Health Limited Partnership | Menif Financial vs. Golan Plastic |
| IDI Insurance vs. Harel Insurance Investments | IDI Insurance vs. Migdal Insurance | IDI Insurance vs. Menora Miv Hld | IDI Insurance vs. The Phoenix Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |