Correlation Between Menif Financial and Altshuler Shaham

Can any of the company-specific risk be diversified away by investing in both Menif Financial and Altshuler Shaham 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 Menif Financial and Altshuler Shaham into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Menif Financial Services and Altshuler Shaham Financial, you can compare the effects of market volatilities on Menif Financial and Altshuler Shaham 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 Menif Financial with a short position of Altshuler Shaham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and Altshuler Shaham.

Diversification Opportunities for Menif Financial and Altshuler Shaham

0.84

Correlation Coefficient

Menif Financial  Altshuler Shaham

Very poor diversification

The 3 months correlation between Menif and Altshuler is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and Altshuler Shaham Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altshuler Shaham Fin and Menif Financial 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 Menif Financial Services are associated (or correlated) with Altshuler Shaham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altshuler Shaham Fin has no effect on the direction of Menif Financial i.e., Menif Financial and Altshuler Shaham go up and down completely randomly.

Pair Corralation between Menif Financial and Altshuler Shaham

Assuming the 90 days trading horizon Menif Financial Services is expected to generate 0.79 times more return on investment than Altshuler Shaham. However, Menif Financial Services is 1.27 times less risky than Altshuler Shaham. It trades about 0.1 of its potential returns per unit of risk. Altshuler Shaham Financial is currently generating about 0.02 per unit of risk. If you would invest  85,573  in Menif Financial Services on October 10, 2024 and sell it today you would earn a total of  85,127  from holding Menif Financial Services or generate 99.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Menif Financial Services  vs.  Altshuler Shaham Financial

Menif Financial Services

Risk-Adjusted Performance

14 of 100

Good

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

Altshuler Shaham Fin

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altshuler Shaham Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Altshuler Shaham sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Menif Financial and Altshuler Shaham

The main advantage of trading using opposite Menif Financial and Altshuler Shaham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, Altshuler Shaham 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 Altshuler Shaham will offset losses from the drop in Altshuler Shaham's long position.

The idea behind Menif Financial Services and Altshuler Shaham Financial 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.