Correlation Between Phoenix Holdings and IDI Insurance
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and IDI Insurance 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 IDI Insurance 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 IDI Insurance, you can compare the effects of market volatilities on Phoenix Holdings and IDI Insurance 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 IDI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and IDI Insurance.
Diversification Opportunities for Phoenix Holdings and IDI Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Phoenix and IDI is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and IDI Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDI Insurance 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 IDI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDI Insurance has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and IDI Insurance go up and down completely randomly.
Pair Corralation between Phoenix Holdings and IDI Insurance
Assuming the 90 days trading horizon Phoenix Holdings is expected to generate 1.14 times less return on investment than IDI Insurance. But when comparing it to its historical volatility, The Phoenix Holdings is 1.23 times less risky than IDI Insurance. It trades about 0.43 of its potential returns per unit of risk. IDI Insurance is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,306,000 in IDI Insurance on November 3, 2024 and sell it today you would earn a total of 184,000 from holding IDI Insurance or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Phoenix Holdings vs. IDI Insurance
Performance |
| Timeline |
| Phoenix Holdings |
| IDI Insurance |
Phoenix Holdings and IDI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and IDI Insurance
The main advantage of trading using opposite Phoenix Holdings and IDI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, IDI Insurance 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 IDI Insurance will offset losses from the drop in IDI Insurance'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 |
| IDI Insurance vs. Migdal Insurance | IDI Insurance vs. Clal Insurance Enterprises | IDI Insurance vs. Bank Hapoalim | IDI Insurance vs. Bank Leumi Le Israel |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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