Correlation Between Harel Insurance and Menora Miv

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Harel Insurance and Menora Miv 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 Harel Insurance and Menora Miv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harel Insurance Investments and Menora Miv Hld, you can compare the effects of market volatilities on Harel Insurance and Menora Miv 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 Harel Insurance with a short position of Menora Miv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Insurance and Menora Miv.

Diversification Opportunities for Harel Insurance and Menora Miv

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Harel and Menora is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Harel Insurance Investments and Menora Miv Hld in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Miv Hld and Harel Insurance 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 Harel Insurance Investments are associated (or correlated) with Menora Miv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Miv Hld has no effect on the direction of Harel Insurance i.e., Harel Insurance and Menora Miv go up and down completely randomly.

Pair Corralation between Harel Insurance and Menora Miv

Assuming the 90 days trading horizon Harel Insurance Investments is expected to generate 0.91 times more return on investment than Menora Miv. However, Harel Insurance Investments is 1.1 times less risky than Menora Miv. It trades about 0.09 of its potential returns per unit of risk. Menora Miv Hld is currently generating about 0.01 per unit of risk. If you would invest  350,500  in Harel Insurance Investments on December 29, 2023 and sell it today you would earn a total of  8,000  from holding Harel Insurance Investments or generate 2.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Harel Insurance Investments  vs.  Menora Miv Hld

 Performance 
       Timeline  
Harel Insurance Inve 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Harel Insurance Investments are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Harel Insurance sustained solid returns over the last few months and may actually be approaching a breakup point.
Menora Miv Hld 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Menora Miv Hld are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Menora Miv may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Harel Insurance and Menora Miv Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Harel Insurance and Menora Miv

The main advantage of trading using opposite Harel Insurance and Menora Miv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Insurance position performs unexpectedly, Menora Miv 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 Miv will offset losses from the drop in Menora Miv's long position.
The idea behind Harel Insurance Investments and Menora Miv Hld pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities