Correlation Between Menif Financial and Mobile Max
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Mobile Max 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 Mobile Max 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 Mobile Max M, you can compare the effects of market volatilities on Menif Financial and Mobile Max 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 Mobile Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Mobile Max.
Diversification Opportunities for Menif Financial and Mobile Max
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Menif and Mobile is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Mobile Max M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Max M 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 Mobile Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Max M has no effect on the direction of Menif Financial i.e., Menif Financial and Mobile Max go up and down completely randomly.
Pair Corralation between Menif Financial and Mobile Max
Assuming the 90 days trading horizon Menif Financial is expected to generate 1.18 times less return on investment than Mobile Max. But when comparing it to its historical volatility, Menif Financial Services is 1.81 times less risky than Mobile Max. It trades about 0.12 of its potential returns per unit of risk. Mobile Max M is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,680 in Mobile Max M on November 3, 2024 and sell it today you would earn a total of 1,550 from holding Mobile Max M or generate 57.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. Mobile Max M
Performance |
| Timeline |
| Menif Financial Services |
| Mobile Max M |
Menif Financial and Mobile Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Mobile Max
The main advantage of trading using opposite Menif Financial and Mobile Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Mobile Max 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 Mobile Max will offset losses from the drop in Mobile Max'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 |
| Mobile Max vs. Scope Metals Group | Mobile Max vs. Golan Plastic | Mobile Max vs. Meitav Dash Investments | Mobile Max vs. Sure Tech Investments LP |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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