Correlation Between Menif Financial and Nawi Brothers
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Nawi Brothers 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 Nawi Brothers 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 Nawi Brothers Group, you can compare the effects of market volatilities on Menif Financial and Nawi Brothers 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 Nawi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Nawi Brothers.
Diversification Opportunities for Menif Financial and Nawi Brothers
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Menif and Nawi is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Nawi Brothers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawi Brothers Group 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 Nawi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawi Brothers Group has no effect on the direction of Menif Financial i.e., Menif Financial and Nawi Brothers go up and down completely randomly.
Pair Corralation between Menif Financial and Nawi Brothers
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 1.08 times more return on investment than Nawi Brothers. However, Menif Financial is 1.08 times more volatile than Nawi Brothers Group. It trades about 0.13 of its potential returns per unit of risk. Nawi Brothers Group is currently generating about 0.13 per unit of risk. If you would invest 74,932 in Menif Financial Services on December 1, 2024 and sell it today you would earn a total of 114,168 from holding Menif Financial Services or generate 152.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. Nawi Brothers Group
Performance |
| Timeline |
| Menif Financial Services |
| Nawi Brothers Group |
Menif Financial and Nawi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Nawi Brothers
The main advantage of trading using opposite Menif Financial and Nawi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Nawi Brothers 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 Nawi Brothers will offset losses from the drop in Nawi Brothers' long position.| Menif Financial vs. Batm Advanced Communications | Menif Financial vs. Gilat Telecom Global | Menif Financial vs. Computer Direct | Menif Financial vs. One Software Technologies |
| Nawi Brothers vs. Isracard | Nawi Brothers vs. Bank Hapoalim | Nawi Brothers vs. Tadiran Hldg | Nawi Brothers vs. Mizrahi Tefahot |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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