Correlation Between Phoenix Holdings and Jerusalem
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Jerusalem 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 Jerusalem 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 Jerusalem, you can compare the effects of market volatilities on Phoenix Holdings and Jerusalem 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 Jerusalem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Jerusalem.
Diversification Opportunities for Phoenix Holdings and Jerusalem
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Phoenix and Jerusalem is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Jerusalem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jerusalem 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 Jerusalem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jerusalem has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Jerusalem go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Jerusalem
Assuming the 90 days trading horizon Phoenix Holdings is expected to generate 1.02 times less return on investment than Jerusalem. In addition to that, Phoenix Holdings is 1.14 times more volatile than Jerusalem. It trades about 0.17 of its total potential returns per unit of risk. Jerusalem is currently generating about 0.19 per unit of volatility. If you would invest 121,115 in Jerusalem on August 29, 2024 and sell it today you would earn a total of 39,685 from holding Jerusalem or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Phoenix Holdings vs. Jerusalem
Performance |
| Timeline |
| Phoenix Holdings |
| Jerusalem |
Phoenix Holdings and Jerusalem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Jerusalem
The main advantage of trading using opposite Phoenix Holdings and Jerusalem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Jerusalem 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 Jerusalem will offset losses from the drop in Jerusalem'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 |
| Jerusalem vs. Mizrahi Tefahot | Jerusalem vs. First International Bank | Jerusalem vs. Israel Discount Bank | Jerusalem 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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