Correlation Between Zur Shamir and Menif Financial
Can any of the company-specific risk be diversified away by investing in both Zur Shamir 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 Zur Shamir and Menif Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zur Shamir Holdings and Menif Financial Services, you can compare the effects of market volatilities on Zur Shamir 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 Zur Shamir with a short position of Menif Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zur Shamir and Menif Financial.
Diversification Opportunities for Zur Shamir and Menif Financial
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zur and Menif is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zur Shamir Holdings 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 Zur Shamir 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 Zur Shamir Holdings 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 Zur Shamir i.e., Zur Shamir and Menif Financial go up and down completely randomly.
Pair Corralation between Zur Shamir and Menif Financial
Assuming the 90 days trading horizon Zur Shamir Holdings is expected to generate 0.69 times more return on investment than Menif Financial. However, Zur Shamir Holdings is 1.46 times less risky than Menif Financial. It trades about 0.17 of its potential returns per unit of risk. Menif Financial Services is currently generating about 0.07 per unit of risk. If you would invest 66,400 in Zur Shamir Holdings on September 3, 2024 and sell it today you would earn a total of 3,070 from holding Zur Shamir Holdings or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zur Shamir Holdings vs. Menif Financial Services
Performance |
| Timeline |
| Zur Shamir Holdings |
| Menif Financial Services |
Zur Shamir and Menif Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zur Shamir and Menif Financial
The main advantage of trading using opposite Zur Shamir and Menif Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zur Shamir 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.| Zur Shamir vs. Bank Hapoalim | Zur Shamir vs. Israel Discount Bank | Zur Shamir vs. First International Bank | Zur Shamir vs. Elbit Systems |
| Menif Financial vs. Sure Tech Investments LP | Menif Financial vs. Arad Investment Industrial | Menif Financial vs. Oron Group Investments | Menif Financial vs. Harel Insurance Investments |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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