Correlation Between FIBI Holdings and Fantasy Network
Can any of the company-specific risk be diversified away by investing in both FIBI Holdings and Fantasy Network 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 Fantasy Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIBI Holdings and Fantasy Network, you can compare the effects of market volatilities on FIBI Holdings and Fantasy Network 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 Fantasy Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBI Holdings and Fantasy Network.
Diversification Opportunities for FIBI Holdings and Fantasy Network
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FIBI and Fantasy is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding FIBI Holdings and Fantasy Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fantasy Network 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 Fantasy Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fantasy Network has no effect on the direction of FIBI Holdings i.e., FIBI Holdings and Fantasy Network go up and down completely randomly.
Pair Corralation between FIBI Holdings and Fantasy Network
Assuming the 90 days trading horizon FIBI Holdings is expected to generate 0.36 times more return on investment than Fantasy Network. However, FIBI Holdings is 2.76 times less risky than Fantasy Network. It trades about 0.42 of its potential returns per unit of risk. Fantasy Network is currently generating about -0.09 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. Fantasy Network
Performance |
| Timeline |
| FIBI Holdings |
| Fantasy Network |
FIBI Holdings and Fantasy Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBI Holdings and Fantasy Network
The main advantage of trading using opposite FIBI Holdings and Fantasy Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBI Holdings position performs unexpectedly, Fantasy Network 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 Fantasy Network will offset losses from the drop in Fantasy Network'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 |
| Fantasy Network vs. Bank Leumi Le Israel | Fantasy Network vs. Teva Pharmaceutical Industries | Fantasy Network vs. Bank Hapoalim | Fantasy Network vs. Elbit Systems |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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