Correlation Between FIBI Holdings and Capital Point
Can any of the company-specific risk be diversified away by investing in both FIBI Holdings and Capital Point 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 FIBI Holdings and Capital Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIBI Holdings and Capital Point, you can compare the effects of market volatilities on FIBI Holdings and Capital Point 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 FIBI Holdings with a short position of Capital Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBI Holdings and Capital Point.
Diversification Opportunities for FIBI Holdings and Capital Point
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIBI and Capital is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding FIBI Holdings and Capital Point in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Point and FIBI Holdings 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 FIBI Holdings are associated (or correlated) with Capital Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Point has no effect on the direction of FIBI Holdings i.e., FIBI Holdings and Capital Point go up and down completely randomly.
Pair Corralation between FIBI Holdings and Capital Point
Assuming the 90 days trading horizon FIBI Holdings is expected to generate 0.66 times more return on investment than Capital Point. However, FIBI Holdings is 1.51 times less risky than Capital Point. It trades about 0.41 of its potential returns per unit of risk. Capital Point is currently generating about 0.16 per unit of risk. If you would invest 1,708,000 in FIBI Holdings on August 29, 2024 and sell it today you would earn a total of 122,000 from holding FIBI Holdings or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBI Holdings vs. Capital Point
Performance |
| Timeline |
| FIBI Holdings |
| Capital Point |
FIBI Holdings and Capital Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBI Holdings and Capital Point
The main advantage of trading using opposite FIBI Holdings and Capital Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBI Holdings position performs unexpectedly, Capital Point 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 Capital Point will offset losses from the drop in Capital Point's long position.| FIBI Holdings vs. First International Bank | FIBI Holdings vs. Mizrahi Tefahot | FIBI Holdings vs. Israel Discount Bank | FIBI Holdings vs. Bank Leumi Le Israel |
| Capital Point vs. IDI Insurance | Capital Point vs. Eldav L | Capital Point vs. Migdal Insurance | Capital Point vs. Mivtach Shamir |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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