Correlation Between Sella Real and Menivim New
Can any of the company-specific risk be diversified away by investing in both Sella Real and Menivim New 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 Sella Real and Menivim New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sella Real Estate and Menivim The New, you can compare the effects of market volatilities on Sella Real and Menivim New 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 Sella Real with a short position of Menivim New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sella Real and Menivim New.
Diversification Opportunities for Sella Real and Menivim New
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sella and Menivim is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sella Real Estate and Menivim The New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menivim The New and Sella Real 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 Sella Real Estate are associated (or correlated) with Menivim New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menivim The New has no effect on the direction of Sella Real i.e., Sella Real and Menivim New go up and down completely randomly.
Pair Corralation between Sella Real and Menivim New
Assuming the 90 days trading horizon Sella Real is expected to generate 1.41 times less return on investment than Menivim New. But when comparing it to its historical volatility, Sella Real Estate is 1.05 times less risky than Menivim New. It trades about 0.06 of its potential returns per unit of risk. Menivim The New is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11,957 in Menivim The New on November 19, 2024 and sell it today you would earn a total of 8,513 from holding Menivim The New or generate 71.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sella Real Estate vs. Menivim The New
Performance |
| Timeline |
| Sella Real Estate |
| Menivim The New |
Sella Real and Menivim New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sella Real and Menivim New
The main advantage of trading using opposite Sella Real and Menivim New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sella Real position performs unexpectedly, Menivim New 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 Menivim New will offset losses from the drop in Menivim New's long position.| Sella Real vs. Reit 1 | Sella Real vs. Bank Hapoalim | Sella Real vs. Azrieli Group | Sella Real vs. Amot Investments |
| Menivim New vs. Sella Real Estate | Menivim New vs. Reit 1 | Menivim New vs. MeguREIT Israel | Menivim New vs. Azrieli Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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