Correlation Between NXT Energy and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both NXT Energy and Menora Mivtachim 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 NXT Energy and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXT Energy Solutions and Menora Mivtachim Holdings, you can compare the effects of market volatilities on NXT Energy and Menora Mivtachim 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 NXT Energy with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXT Energy and Menora Mivtachim.
Diversification Opportunities for NXT Energy and Menora Mivtachim
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NXT and Menora is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding NXT Energy Solutions and Menora Mivtachim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Mivtachim Holdings and NXT Energy 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 NXT Energy Solutions are associated (or correlated) with Menora Mivtachim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Mivtachim Holdings has no effect on the direction of NXT Energy i.e., NXT Energy and Menora Mivtachim go up and down completely randomly.
Pair Corralation between NXT Energy and Menora Mivtachim
If you would invest 12.00 in NXT Energy Solutions on October 23, 2024 and sell it today you would earn a total of 4.00 from holding NXT Energy Solutions or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
NXT Energy Solutions vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| NXT Energy Solutions |
| Menora Mivtachim Holdings |
NXT Energy and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXT Energy and Menora Mivtachim
The main advantage of trading using opposite NXT Energy and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXT Energy position performs unexpectedly, Menora Mivtachim 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 Menora Mivtachim will offset losses from the drop in Menora Mivtachim's long position.| NXT Energy vs. Agnico Eagle Mines | NXT Energy vs. Osisko Gold Ro | NXT Energy vs. Gold Fields Ltd | NXT Energy vs. AngloGold Ashanti plc |
| Menora Mivtachim vs. Aris Water Solutions | Menora Mivtachim vs. Celestica | Menora Mivtachim vs. Sonos Inc | Menora Mivtachim vs. Antero Midstream Partners |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |