Correlation Between Menivim New and Isras Investment
Can any of the company-specific risk be diversified away by investing in both Menivim New and Isras Investment 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 Menivim New and Isras Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menivim The New and Isras Investment, you can compare the effects of market volatilities on Menivim New and Isras Investment 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 Menivim New with a short position of Isras Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menivim New and Isras Investment.
Diversification Opportunities for Menivim New and Isras Investment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Menivim and Isras is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Menivim The New and Isras Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isras Investment and Menivim New 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 Menivim The New are associated (or correlated) with Isras Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isras Investment has no effect on the direction of Menivim New i.e., Menivim New and Isras Investment go up and down completely randomly.
Pair Corralation between Menivim New and Isras Investment
Assuming the 90 days trading horizon Menivim New is expected to generate 1.89 times less return on investment than Isras Investment. But when comparing it to its historical volatility, Menivim The New is 1.13 times less risky than Isras Investment. It trades about 0.26 of its potential returns per unit of risk. Isras Investment is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 7,575,000 in Isras Investment on August 28, 2024 and sell it today you would earn a total of 975,000 from holding Isras Investment or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menivim The New vs. Isras Investment
Performance |
| Timeline |
| Menivim The New |
| Isras Investment |
Menivim New and Isras Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menivim New and Isras Investment
The main advantage of trading using opposite Menivim New and Isras Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menivim New position performs unexpectedly, Isras Investment 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 Isras Investment will offset losses from the drop in Isras Investment's long position.| Menivim New vs. Sella Real Estate | Menivim New vs. Reit 1 | Menivim New vs. MeguREIT Israel | Menivim New vs. Azrieli Group |
| Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |