Correlation Between Menivim New and Levinstein Prop
Can any of the company-specific risk be diversified away by investing in both Menivim New and Levinstein Prop 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 Levinstein Prop 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 Levinstein Prop, you can compare the effects of market volatilities on Menivim New and Levinstein Prop 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 Levinstein Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menivim New and Levinstein Prop.
Diversification Opportunities for Menivim New and Levinstein Prop
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Menivim and Levinstein is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Menivim The New and Levinstein Prop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levinstein Prop 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 Levinstein Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levinstein Prop has no effect on the direction of Menivim New i.e., Menivim New and Levinstein Prop go up and down completely randomly.
Pair Corralation between Menivim New and Levinstein Prop
Assuming the 90 days trading horizon Menivim New is expected to generate 3.18 times less return on investment than Levinstein Prop. But when comparing it to its historical volatility, Menivim The New is 1.83 times less risky than Levinstein Prop. It trades about 0.39 of its potential returns per unit of risk. Levinstein Prop is currently generating about 0.67 of returns per unit of risk over similar time horizon. If you would invest 566,400 in Levinstein Prop on August 25, 2024 and sell it today you would earn a total of 173,700 from holding Levinstein Prop or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menivim The New vs. Levinstein Prop
Performance |
| Timeline |
| Menivim The New |
| Levinstein Prop |
Menivim New and Levinstein Prop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menivim New and Levinstein Prop
The main advantage of trading using opposite Menivim New and Levinstein Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menivim New position performs unexpectedly, Levinstein Prop 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 Levinstein Prop will offset losses from the drop in Levinstein Prop's long position.| Menivim New vs. Sella Real Estate | Menivim New vs. Reit 1 | Menivim New vs. MeguREIT Israel | Menivim New vs. Azrieli Group |
| Levinstein Prop vs. Sella Real Estate | Levinstein Prop vs. Amot Investments | Levinstein Prop vs. Israel Canada | Levinstein Prop vs. YH Dimri Construction |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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