Correlation Between Harel Insurance and Menora Miv
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Harel Insurance Investments vs. Menora Miv Hld
Performance |
Timeline |
Harel Insurance Inve |
Menora Miv Hld |
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.Harel Insurance vs. Ratio Oil Explorations | Harel Insurance vs. Bezeq Israeli Telecommunication | Harel Insurance vs. Arena Star Group | Harel Insurance vs. ICL Israel Chemicals |
Menora Miv vs. Ratio Oil Explorations | Menora Miv vs. Bezeq Israeli Telecommunication | Menora Miv vs. Arena Star Group | Menora Miv vs. ICL Israel Chemicals |
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.
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