Correlation Between Menif Financial and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Menif Financial and Sure Tech 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 Sure Tech 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 Sure Tech Investments LP, you can compare the effects of market volatilities on Menif Financial and Sure Tech 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 Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Sure Tech.
Diversification Opportunities for Menif Financial and Sure Tech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Menif and Sure is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech Investments 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of Menif Financial i.e., Menif Financial and Sure Tech go up and down completely randomly.
Pair Corralation between Menif Financial and Sure Tech
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 1.71 times more return on investment than Sure Tech. However, Menif Financial is 1.71 times more volatile than Sure Tech Investments LP. It trades about 0.06 of its potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.14 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 | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Menif Financial Services vs. Sure Tech Investments LP
Performance |
| Timeline |
| Menif Financial Services |
| Sure Tech Investments |
Menif Financial and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and Sure Tech
The main advantage of trading using opposite Menif Financial and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| Menif Financial vs. Sofwave Medical | Menif Financial vs. Epitomee Medical | Menif Financial vs. Payment Financial Technologies | Menif Financial vs. B Communications |
| Sure Tech vs. Feat Fund Investments | Sure Tech vs. Abra Information Technologies | Sure Tech vs. Dan Hotels | Sure Tech vs. Azorim Investment Development |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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