Correlation Between Phoenix Holdings and Avrot Industries
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Avrot Industries 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 Phoenix Holdings and Avrot Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Phoenix Holdings and Avrot Industries, you can compare the effects of market volatilities on Phoenix Holdings and Avrot Industries 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 Phoenix Holdings with a short position of Avrot Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Avrot Industries.
Diversification Opportunities for Phoenix Holdings and Avrot Industries
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Phoenix and Avrot is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Avrot Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avrot Industries and Phoenix 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 The Phoenix Holdings are associated (or correlated) with Avrot Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avrot Industries has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Avrot Industries go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Avrot Industries
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 1.43 times more return on investment than Avrot Industries. However, Phoenix Holdings is 1.43 times more volatile than Avrot Industries. It trades about 0.63 of its potential returns per unit of risk. Avrot Industries is currently generating about -0.24 per unit of risk. If you would invest 413,500 in The Phoenix Holdings on August 27, 2024 and sell it today you would earn a total of 51,900 from holding The Phoenix Holdings or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Phoenix Holdings vs. Avrot Industries
Performance |
| Timeline |
| Phoenix Holdings |
| Avrot Industries |
Phoenix Holdings and Avrot Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Avrot Industries
The main advantage of trading using opposite Phoenix Holdings and Avrot Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Avrot Industries 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 Avrot Industries will offset losses from the drop in Avrot Industries' long position.| Phoenix Holdings vs. Harel Insurance Investments | Phoenix Holdings vs. Migdal Insurance | Phoenix Holdings vs. Menora Miv Hld | Phoenix Holdings vs. Israel Discount Bank |
| Avrot Industries vs. Hiron Trade Investments Industrial | Avrot Industries vs. ICL Israel Chemicals | Avrot Industries vs. Imed Infinity Medical Limited | Avrot Industries vs. Magic Software Enterprises |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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