Correlation Between Menif Financial and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Menif Financial and EN Shoham 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 EN Shoham 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 EN Shoham Business, you can compare the effects of market volatilities on Menif Financial and EN Shoham 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 EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and EN Shoham.
Diversification Opportunities for Menif Financial and EN Shoham
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Menif and SHOM is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business 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 EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of Menif Financial i.e., Menif Financial and EN Shoham go up and down completely randomly.
Pair Corralation between Menif Financial and EN Shoham
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 1.16 times more return on investment than EN Shoham. However, Menif Financial is 1.16 times more volatile than EN Shoham Business. It trades about 0.06 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.06 per unit of risk. If you would invest 171,000 in Menif Financial Services on November 3, 2024 and sell it today you would earn a total of 3,300 from holding Menif Financial Services or generate 1.93% 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. EN Shoham Business
Performance |
| Timeline |
| Menif Financial Services |
| EN Shoham Business |
Menif Financial and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and EN Shoham
The main advantage of trading using opposite Menif Financial and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham'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 |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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