Correlation Between Nawi Brothers and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Nawi Brothers and Menif Financial 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 Nawi Brothers and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nawi Brothers Group and Menif Financial Services, you can compare the effects of market volatilities on Nawi Brothers and Menif Financial 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 Nawi Brothers with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nawi Brothers and Menif Financial.
Diversification Opportunities for Nawi Brothers and Menif Financial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nawi and Menif is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nawi Brothers Group and Menif Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menif Financial Services and Nawi Brothers 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 Nawi Brothers Group are associated (or correlated) with Menif Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menif Financial Services has no effect on the direction of Nawi Brothers i.e., Nawi Brothers and Menif Financial go up and down completely randomly.
Pair Corralation between Nawi Brothers and Menif Financial
Assuming the 90 days trading horizon Nawi Brothers Group is expected to generate 0.71 times more return on investment than Menif Financial. However, Nawi Brothers Group is 1.41 times less risky than Menif Financial. It trades about 0.22 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.03 per unit of risk. If you would invest 315,000 in Nawi Brothers Group on September 1, 2024 and sell it today you would earn a total of 21,500 from holding Nawi Brothers Group or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nawi Brothers Group vs. Menif Financial Services
Performance |
| Timeline |
| Nawi Brothers Group |
| Menif Financial Services |
Nawi Brothers and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nawi Brothers and Menif Financial
The main advantage of trading using opposite Nawi Brothers and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nawi Brothers position performs unexpectedly, Menif Financial 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 Menif Financial will offset losses from the drop in Menif Financial's long position.| Nawi Brothers vs. Menif Financial Services | Nawi Brothers vs. Accel Solutions Group | Nawi Brothers vs. Rani Zim Shopping | Nawi Brothers vs. Mivtach Shamir |
| Menif Financial vs. Isracard | Menif Financial vs. Jacob Finance And | Menif Financial vs. Bull Trading And |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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