Correlation Between Menif Financial and Israel Shipyards
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Israel Shipyards 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 Israel Shipyards 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 Israel Shipyards, you can compare the effects of market volatilities on Menif Financial and Israel Shipyards 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 Israel Shipyards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Israel Shipyards.
Diversification Opportunities for Menif Financial and Israel Shipyards
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Menif and Israel is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Israel Shipyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Shipyards 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 Israel Shipyards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Shipyards has no effect on the direction of Menif Financial i.e., Menif Financial and Israel Shipyards go up and down completely randomly.
Pair Corralation between Menif Financial and Israel Shipyards
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 0.84 times more return on investment than Israel Shipyards. However, Menif Financial Services is 1.19 times less risky than Israel Shipyards. It trades about 0.17 of its potential returns per unit of risk. Israel Shipyards is currently generating about 0.08 per unit of risk. If you would invest 85,466 in Menif Financial Services on September 14, 2024 and sell it today you would earn a total of 71,234 from holding Menif Financial Services or generate 83.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. Israel Shipyards
Performance |
| Timeline |
| Menif Financial Services |
| Israel Shipyards |
Menif Financial and Israel Shipyards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Israel Shipyards
The main advantage of trading using opposite Menif Financial and Israel Shipyards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Israel Shipyards 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 Israel Shipyards will offset losses from the drop in Israel Shipyards' long position.| Menif Financial vs. Michman Basad | Menif Financial vs. Isracard | Menif Financial vs. Nawi Brothers Group | Menif Financial vs. Blender Financial Technologies |
| Israel Shipyards vs. Harel Insurance Investments | Israel Shipyards vs. Alrov Properties Lodgings | Israel Shipyards vs. Amir Marketing and | Israel Shipyards vs. Dan Hotels |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |