Correlation Between FIBI Holdings and EN Shoham
Can any of the company-specific risk be diversified away by investing in both FIBI Holdings and EN Shoham 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 EN Shoham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIBI Holdings and EN Shoham Business, you can compare the effects of market volatilities on FIBI Holdings and EN Shoham 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 EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBI Holdings and EN Shoham.
Diversification Opportunities for FIBI Holdings and EN Shoham
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FIBI and SHOM is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding FIBI Holdings and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business 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 EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of FIBI Holdings i.e., FIBI Holdings and EN Shoham go up and down completely randomly.
Pair Corralation between FIBI Holdings and EN Shoham
Assuming the 90 days trading horizon FIBI Holdings is expected to generate 0.67 times more return on investment than EN Shoham. However, FIBI Holdings is 1.49 times less risky than EN Shoham. It trades about 0.06 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.02 per unit of risk. If you would invest 1,315,692 in FIBI Holdings on August 28, 2024 and sell it today you would earn a total of 484,308 from holding FIBI Holdings or generate 36.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBI Holdings vs. EN Shoham Business
Performance |
| Timeline |
| FIBI Holdings |
| EN Shoham Business |
FIBI Holdings and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBI Holdings and EN Shoham
The main advantage of trading using opposite FIBI Holdings and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBI Holdings position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham'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 |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |