Correlation Between Menora Mivtachim and Eltek
Can any of the company-specific risk be diversified away by investing in both Menora Mivtachim and Eltek 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 Eltek 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 Eltek, you can compare the effects of market volatilities on Menora Mivtachim and Eltek 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 Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Mivtachim and Eltek.
Diversification Opportunities for Menora Mivtachim and Eltek
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Menora and Eltek is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Menora Mivtachim Holdings and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek 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 Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Menora Mivtachim i.e., Menora Mivtachim and Eltek go up and down completely randomly.
Pair Corralation between Menora Mivtachim and Eltek
If you would invest 1,110 in Eltek on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Eltek or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Menora Mivtachim Holdings vs. Eltek
Performance |
| Timeline |
| Menora Mivtachim Holdings |
| Eltek |
Menora Mivtachim and Eltek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menora Mivtachim and Eltek
The main advantage of trading using opposite Menora Mivtachim and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Mivtachim position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.| Menora Mivtachim vs. Alvotech | Menora Mivtachim vs. Apartment Investment and | Menora Mivtachim vs. Goosehead Insurance | Menora Mivtachim vs. Uber Technologies |
| Eltek vs. Methode Electronics | Eltek vs. OSI Systems | Eltek vs. Bel Fuse A | Eltek vs. Richardson Electronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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