Correlation Between Eldav L and Phoenix Holdings
Can any of the company-specific risk be diversified away by investing in both Eldav L 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 Eldav L and Phoenix Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eldav L and The Phoenix Holdings, you can compare the effects of market volatilities on Eldav L 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 Eldav L with a short position of Phoenix Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eldav L and Phoenix Holdings.
Diversification Opportunities for Eldav L and Phoenix Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eldav and Phoenix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eldav L and The Phoenix Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Holdings and Eldav L 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 Eldav L 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 Eldav L i.e., Eldav L and Phoenix Holdings go up and down completely randomly.
Pair Corralation between Eldav L and Phoenix Holdings
Assuming the 90 days trading horizon Eldav L is expected to generate 1.08 times less return on investment than Phoenix Holdings. In addition to that, Eldav L is 2.42 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eldav L vs. The Phoenix Holdings
Performance |
| Timeline |
| Eldav L |
| Phoenix Holdings |
Eldav L and Phoenix Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eldav L and Phoenix Holdings
The main advantage of trading using opposite Eldav L and Phoenix Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eldav L 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.| Eldav L vs. SR Accord | Eldav L vs. Rapac Communication Infrastructure | Eldav L vs. Nextcom | Eldav L vs. EN Shoham Business |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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