Correlation Between Menora Miv and Nice

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

Diversification Opportunities for Menora Miv and Nice

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Menora and Nice is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice and Menora Miv 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 Menora Miv Hld are associated (or correlated) with Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Menora Miv i.e., Menora Miv and Nice go up and down completely randomly.

Pair Corralation between Menora Miv and Nice

Assuming the 90 days trading horizon Menora Miv is expected to generate 29.47 times less return on investment than Nice. But when comparing it to its historical volatility, Menora Miv Hld is 1.15 times less risky than Nice. It trades about 0.01 of its potential returns per unit of risk. Nice is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  8,778,000  in Nice on December 29, 2023 and sell it today you would earn a total of  794,000  from holding Nice or generate 9.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy94.44%
ValuesDaily Returns

Menora Miv Hld  vs.  Nice

 Performance 
       Timeline  
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.
Nice 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Nice are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nice sustained solid returns over the last few months and may actually be approaching a breakup point.

Menora Miv and Nice Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Menora Miv and Nice

The main advantage of trading using opposite Menora Miv and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.
The idea behind Menora Miv Hld and Nice 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.

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