Correlation Between Menivim New and Mivne Real
Can any of the company-specific risk be diversified away by investing in both Menivim New and Mivne Real 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 Mivne Real 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 Mivne Real Estate, you can compare the effects of market volatilities on Menivim New and Mivne Real 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 Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menivim New and Mivne Real.
Diversification Opportunities for Menivim New and Mivne Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Menivim and Mivne is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Menivim The New and Mivne Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivne Real Estate 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 Mivne Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivne Real Estate has no effect on the direction of Menivim New i.e., Menivim New and Mivne Real go up and down completely randomly.
Pair Corralation between Menivim New and Mivne Real
Assuming the 90 days trading horizon Menivim New is expected to generate 1.24 times less return on investment than Mivne Real. But when comparing it to its historical volatility, Menivim The New is 1.14 times less risky than Mivne Real. It trades about 0.32 of its potential returns per unit of risk. Mivne Real Estate is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 97,500 in Mivne Real Estate on August 29, 2024 and sell it today you would earn a total of 11,200 from holding Mivne Real Estate or generate 11.49% 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. Mivne Real Estate
Performance |
| Timeline |
| Menivim The New |
| Mivne Real Estate |
Menivim New and Mivne Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menivim New and Mivne Real
The main advantage of trading using opposite Menivim New and Mivne Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menivim New position performs unexpectedly, Mivne Real 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 Mivne Real will offset losses from the drop in Mivne Real's long position.| Menivim New vs. Sella Real Estate | Menivim New vs. Reit 1 | Menivim New vs. MeguREIT Israel | Menivim New vs. Azrieli Group |
| Mivne Real vs. Azrieli Group | Mivne Real vs. Alony Hetz Properties | Mivne Real vs. Israel Discount Bank | Mivne Real vs. Melisron |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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