Correlation Between Visa and Menora Miv
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Menora Miv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Menora Miv Hld, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Menora Miv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Menora Miv.
Diversification Opportunities for Visa and Menora Miv
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Visa and Menora is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Menora Miv go up and down completely randomly.
Pair Corralation between Visa and Menora Miv
Taking into account the 90-day investment horizon Visa is expected to generate 3.94 times less return on investment than Menora Miv. But when comparing it to its historical volatility, Visa Class A is 1.91 times less risky than Menora Miv. It trades about 0.01 of its potential returns per unit of risk. Menora Miv Hld is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 886,961 in Menora Miv Hld on January 24, 2024 and sell it today you would earn a total of 13,039 from holding Menora Miv Hld or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Visa Class A vs. Menora Miv Hld
Performance |
| Timeline |
| Visa Class A |
| Menora Miv Hld |
Visa and Menora Miv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Menora Miv
The main advantage of trading using opposite Visa and Menora Miv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart HoldingsInc | Visa vs. Ally Financial |
| Menora Miv vs. Harel Insurance Investments | Menora Miv vs. Migdal Insurance | Menora Miv vs. Clal Insurance Enterprises | Menora Miv vs. The Phoenix Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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