Correlation Between ThredUp and Menora Mivtachim
Can any of the company-specific risk be diversified away by investing in both ThredUp 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 ThredUp and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ThredUp and Menora Mivtachim Holdings, you can compare the effects of market volatilities on ThredUp 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 ThredUp with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of ThredUp and Menora Mivtachim.
Diversification Opportunities for ThredUp and Menora Mivtachim
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ThredUp and Menora is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ThredUp 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 ThredUp 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 ThredUp 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 ThredUp i.e., ThredUp and Menora Mivtachim go up and down completely randomly.
Pair Corralation between ThredUp and Menora Mivtachim
If you would invest 145.00 in ThredUp on October 23, 2024 and sell it today you would earn a total of 84.00 from holding ThredUp or generate 57.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
ThredUp vs. Menora Mivtachim Holdings
Performance |
| Timeline |
| ThredUp |
| Menora Mivtachim Holdings |
ThredUp and Menora Mivtachim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ThredUp and Menora Mivtachim
The main advantage of trading using opposite ThredUp and Menora Mivtachim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ThredUp 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.| ThredUp vs. Vera Bradley | ThredUp vs. Wolverine World Wide | ThredUp vs. Rocky Brands | ThredUp vs. Steven Madden |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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