Correlation Between Menif Financial and MediPress Health
Can any of the company-specific risk be diversified away by investing in both Menif Financial and MediPress Health 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 MediPress Health 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 MediPress Health Limited Partnership, you can compare the effects of market volatilities on Menif Financial and MediPress Health 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 MediPress Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menif Financial and MediPress Health.
Diversification Opportunities for Menif Financial and MediPress Health
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Menif and MediPress is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Menif Financial Services and MediPress Health Limited Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediPress Health Lim 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 MediPress Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediPress Health Lim has no effect on the direction of Menif Financial i.e., Menif Financial and MediPress Health go up and down completely randomly.
Pair Corralation between Menif Financial and MediPress Health
Assuming the 90 days trading horizon Menif Financial Services is expected to generate 1.02 times more return on investment than MediPress Health. However, Menif Financial is 1.02 times more volatile than MediPress Health Limited Partnership. It trades about 0.17 of its potential returns per unit of risk. MediPress Health Limited Partnership is currently generating about 0.1 per unit of risk. If you would invest 126,511 in Menif Financial Services on September 4, 2024 and sell it today you would earn a total of 21,489 from holding Menif Financial Services or generate 16.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Menif Financial Services vs. MediPress Health Limited Partn
Performance |
Timeline |
Menif Financial Services |
MediPress Health Lim |
Menif Financial and MediPress Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Menif Financial and MediPress Health
The main advantage of trading using opposite Menif Financial and MediPress Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menif Financial position performs unexpectedly, MediPress Health 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 MediPress Health will offset losses from the drop in MediPress Health's long position.Menif Financial vs. MediPress Health Limited Partnership | Menif Financial vs. Harel Insurance Investments | Menif Financial vs. Shagrir Group Vehicle | Menif Financial vs. Tower Semiconductor |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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