Correlation Between Phoenix Holdings and Brainsway
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Brainsway 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 Brainsway 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 Brainsway, you can compare the effects of market volatilities on Phoenix Holdings and Brainsway 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 Brainsway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Brainsway.
Diversification Opportunities for Phoenix Holdings and Brainsway
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Phoenix and Brainsway is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Brainsway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brainsway 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 Brainsway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brainsway has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Brainsway go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Brainsway
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 0.56 times more return on investment than Brainsway. However, The Phoenix Holdings is 1.78 times less risky than Brainsway. It trades about 0.29 of its potential returns per unit of risk. Brainsway is currently generating about -0.01 per unit of risk. If you would invest 585,400 in The Phoenix Holdings on November 27, 2024 and sell it today you would earn a total of 51,100 from holding The Phoenix Holdings or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
The Phoenix Holdings vs. Brainsway
Performance |
| Timeline |
| Phoenix Holdings |
| Brainsway |
Phoenix Holdings and Brainsway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Brainsway
The main advantage of trading using opposite Phoenix Holdings and Brainsway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Brainsway 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 Brainsway will offset losses from the drop in Brainsway's 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 |
| Brainsway vs. Brainsway | Brainsway vs. Kamada | Brainsway vs. Foresight Autonomous Holdings | Brainsway vs. Compugen |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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