Correlation Between Menora Mivtachim and Air Transport
Can any of the company-specific risk be diversified away by investing in both Menora Mivtachim and Air Transport 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 Menora Mivtachim and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menora Mivtachim Holdings and Air Transport Services, you can compare the effects of market volatilities on Menora Mivtachim and Air Transport 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 Menora Mivtachim with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Mivtachim and Air Transport.
Diversification Opportunities for Menora Mivtachim and Air Transport
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Menora and Air is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Menora Mivtachim Holdings and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and Menora Mivtachim 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 Menora Mivtachim Holdings are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Menora Mivtachim i.e., Menora Mivtachim and Air Transport go up and down completely randomly.
Pair Corralation between Menora Mivtachim and Air Transport
If you would invest 2,190 in Air Transport Services on October 23, 2024 and sell it today you would earn a total of 21.00 from holding Air Transport Services or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Menora Mivtachim Holdings vs. Air Transport Services
Performance |
| Timeline |
| Menora Mivtachim Holdings |
| Air Transport Services |
Menora Mivtachim and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Mivtachim and Air Transport
The main advantage of trading using opposite Menora Mivtachim and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Mivtachim position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Menora Mivtachim vs. Aris Water Solutions | Menora Mivtachim vs. Celestica | Menora Mivtachim vs. Sonos Inc | Menora Mivtachim vs. Antero Midstream Partners |
| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
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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