Correlation Between Teuza A and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Teuza A 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 Teuza A and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teuza A Fairchild and Menif Financial Services, you can compare the effects of market volatilities on Teuza A 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 Teuza A with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teuza A and Menif Financial.
Diversification Opportunities for Teuza A and Menif Financial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teuza and Menif is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Teuza A Fairchild 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 Teuza A 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 Teuza A Fairchild 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 Teuza A i.e., Teuza A and Menif Financial go up and down completely randomly.
Pair Corralation between Teuza A and Menif Financial
Assuming the 90 days trading horizon Teuza A is expected to generate 2.57 times less return on investment than Menif Financial. In addition to that, Teuza A is 1.97 times more volatile than Menif Financial Services. It trades about 0.02 of its total potential returns per unit of risk. Menif Financial Services is currently generating about 0.12 per unit of volatility. If you would invest 113,425 in Menif Financial Services on September 3, 2024 and sell it today you would earn a total of 34,575 from holding Menif Financial Services or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teuza A Fairchild vs. Menif Financial Services
Performance |
| Timeline |
| Teuza A Fairchild |
| Menif Financial Services |
Teuza A and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teuza A and Menif Financial
The main advantage of trading using opposite Teuza A and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teuza A 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.| Teuza A vs. Bank Hapoalim | Teuza A vs. Israel Discount Bank | Teuza A vs. First International Bank | Teuza A vs. Elbit Systems |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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