Correlation Between Menora Mivtachim and Allegiant Travel
Can any of the company-specific risk be diversified away by investing in both Menora Mivtachim and Allegiant Travel 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 Mivtachim and Allegiant Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menora Mivtachim Holdings and Allegiant Travel, you can compare the effects of market volatilities on Menora Mivtachim and Allegiant Travel 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 Mivtachim with a short position of Allegiant Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Mivtachim and Allegiant Travel.
Diversification Opportunities for Menora Mivtachim and Allegiant Travel
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Menora and Allegiant is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Menora Mivtachim Holdings and Allegiant Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Travel and Menora Mivtachim 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 Mivtachim Holdings are associated (or correlated) with Allegiant Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Travel has no effect on the direction of Menora Mivtachim i.e., Menora Mivtachim and Allegiant Travel go up and down completely randomly.
Pair Corralation between Menora Mivtachim and Allegiant Travel
If you would invest 8,226 in Allegiant Travel on October 10, 2024 and sell it today you would earn a total of 1,686 from holding Allegiant Travel or generate 20.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Menora Mivtachim Holdings vs. Allegiant Travel
Performance |
Timeline |
Menora Mivtachim Holdings |
Allegiant Travel |
Menora Mivtachim and Allegiant Travel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Menora Mivtachim and Allegiant Travel
The main advantage of trading using opposite Menora Mivtachim and Allegiant Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Mivtachim position performs unexpectedly, Allegiant Travel 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 Allegiant Travel will offset losses from the drop in Allegiant Travel's long position.Menora Mivtachim vs. ServiceNow | Menora Mivtachim vs. Patterson UTI Energy | Menora Mivtachim vs. Pembina Pipeline | Menora Mivtachim vs. Borr Drilling |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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