Correlation Between G Willi and Menif Financial
Can any of the company-specific risk be diversified away by investing in both G Willi 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 G Willi and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and Menif Financial Services, you can compare the effects of market volatilities on G Willi 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 G Willi with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Menif Financial.
Diversification Opportunities for G Willi and Menif Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WILC and Menif is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International 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 G Willi 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 G Willi Food International 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 G Willi i.e., G Willi and Menif Financial go up and down completely randomly.
Pair Corralation between G Willi and Menif Financial
Assuming the 90 days trading horizon G Willi Food International is expected to generate about the same return on investment as Menif Financial Services. But, G Willi Food International is 1.1 times less risky than Menif Financial. It trades about 0.14 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.12 per unit of risk. If you would invest 109,979 in Menif Financial Services on November 3, 2024 and sell it today you would earn a total of 64,321 from holding Menif Financial Services or generate 58.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Willi Food International vs. Menif Financial Services
Performance |
| Timeline |
| G Willi Food |
| Menif Financial Services |
G Willi and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Menif Financial
The main advantage of trading using opposite G Willi and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi 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.| G Willi vs. Adgar Investments and | G Willi vs. Harel Insurance Investments | G Willi vs. Ram On Investments and | G Willi vs. Meitav Dash Investments |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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