Correlation Between Pure Storage and Menora Mivtachim

Can any of the company-specific risk be diversified away by investing in both Pure Storage and Menora Mivtachim 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 Pure Storage and Menora Mivtachim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pure Storage and Menora Mivtachim Holdings, you can compare the effects of market volatilities on Pure Storage and Menora Mivtachim 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 Pure Storage with a short position of Menora Mivtachim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and Menora Mivtachim.

Diversification Opportunities for Pure Storage and Menora Mivtachim

0.0

Correlation Coefficient

Pure Storage  Menora Mivtachim

Pay attention - limited upside

The 3 months correlation between Pure and Menora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and Menora Mivtachim Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Mivtachim Holdings and Pure Storage 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 Pure Storage are associated (or correlated) with Menora Mivtachim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Mivtachim Holdings has no effect on the direction of Pure Storage i.e., Pure Storage and Menora Mivtachim go up and down completely randomly.

Pair Corralation between Pure Storage and Menora Mivtachim

If you would invest  2,505  in Menora Mivtachim Holdings on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Menora Mivtachim Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Pure Storage  vs.  Menora Mivtachim Holdings

Pure Storage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pure Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Menora Mivtachim Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Menora Mivtachim Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Menora Mivtachim is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Pure Storage and Menora Mivtachim

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

The idea behind Pure Storage and Menora Mivtachim Holdings 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.