Correlation Between Menif Financial and Migdal Insurance
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Migdal 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 Migdal 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 Migdal Insurance, you can compare the effects of market volatilities on Menif Financial and Migdal 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 Migdal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Migdal Insurance.
Diversification Opportunities for Menif Financial and Migdal Insurance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Menif and Migdal is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Migdal Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal 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 Migdal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Insurance has no effect on the direction of Menif Financial i.e., Menif Financial and Migdal Insurance go up and down completely randomly.
Pair Corralation between Menif Financial and Migdal Insurance
Assuming the 90 days trading horizon Menif Financial is expected to generate 2.17 times less return on investment than Migdal Insurance. In addition to that, Menif Financial is 1.38 times more volatile than Migdal Insurance. It trades about 0.17 of its total potential returns per unit of risk. Migdal Insurance is currently generating about 0.52 per unit of volatility. If you would invest 50,780 in Migdal Insurance on September 3, 2024 and sell it today you would earn a total of 13,910 from holding Migdal Insurance or generate 27.39% 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. Migdal Insurance
Performance |
| Timeline |
| Menif Financial Services |
| Migdal Insurance |
Menif Financial and Migdal Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Migdal Insurance
The main advantage of trading using opposite Menif Financial and Migdal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Migdal 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 Migdal Insurance will offset losses from the drop in Migdal Insurance's long position.| Menif Financial vs. Sure Tech Investments LP | Menif Financial vs. Arad Investment Industrial | Menif Financial vs. Oron Group Investments | Menif Financial vs. Harel Insurance Investments |
| Migdal Insurance vs. Harel Insurance Investments | Migdal Insurance vs. Clal Insurance Enterprises | Migdal Insurance vs. Bank Hapoalim | Migdal Insurance vs. Bank Leumi Le Israel |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |