Correlation Between Menif Financial and G Willi
Can any of the company-specific risk be diversified away by investing in both Menif Financial and G Willi 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 G Willi 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 G Willi Food International, you can compare the effects of market volatilities on Menif Financial and G Willi 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 G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and G Willi.
Diversification Opportunities for Menif Financial and G Willi
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Menif and WILC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food 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 G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Menif Financial i.e., Menif Financial and G Willi go up and down completely randomly.
Pair Corralation between Menif Financial and G Willi
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 2.02 times more return on investment than G Willi. However, Menif Financial is 2.02 times more volatile than G Willi Food International. It trades about 0.06 of its potential returns per unit of risk. G Willi Food International 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menif Financial Services vs. G Willi Food International
Performance |
| Timeline |
| Menif Financial Services |
| G Willi Food |
Menif Financial and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menif Financial and G Willi
The main advantage of trading using opposite Menif Financial and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi's long position.| Menif Financial vs. Sofwave Medical | Menif Financial vs. Epitomee Medical | Menif Financial vs. Payment Financial Technologies | Menif Financial vs. B Communications |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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