Correlation Between Alony Hetz and Phoenix Holdings
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Phoenix Holdings 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 Alony Hetz and Phoenix Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alony Hetz Properties and The Phoenix Holdings, you can compare the effects of market volatilities on Alony Hetz and Phoenix Holdings 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 Alony Hetz with a short position of Phoenix Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Phoenix Holdings.
Diversification Opportunities for Alony Hetz and Phoenix Holdings
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alony and Phoenix is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and The Phoenix Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Holdings and Alony Hetz 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 Alony Hetz Properties are associated (or correlated) with Phoenix Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Holdings has no effect on the direction of Alony Hetz i.e., Alony Hetz and Phoenix Holdings go up and down completely randomly.
Pair Corralation between Alony Hetz and Phoenix Holdings
Assuming the 90 days trading horizon Alony Hetz is expected to generate 1.35 times less return on investment than Phoenix Holdings. In addition to that, Alony Hetz is 1.92 times more volatile than The Phoenix Holdings. It trades about 0.12 of its total potential returns per unit of risk. The Phoenix Holdings is currently generating about 0.32 per unit of volatility. If you would invest 420,000 in The Phoenix Holdings on August 29, 2024 and sell it today you would earn a total of 56,100 from holding The Phoenix Holdings or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. The Phoenix Holdings
Performance |
| Timeline |
| Alony Hetz Properties |
| Phoenix Holdings |
Alony Hetz and Phoenix Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Phoenix Holdings
The main advantage of trading using opposite Alony Hetz and Phoenix Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Phoenix Holdings 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 Phoenix Holdings will offset losses from the drop in Phoenix Holdings' long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Phoenix Holdings vs. Harel Insurance Investments | Phoenix Holdings vs. Migdal Insurance | Phoenix Holdings vs. Menora Miv Hld | Phoenix Holdings vs. Israel Discount Bank |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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