Correlation Between Phoenix Holdings and Mivtach Shamir
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Mivtach Shamir 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 Mivtach Shamir 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 Mivtach Shamir, you can compare the effects of market volatilities on Phoenix Holdings and Mivtach Shamir 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 Mivtach Shamir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Mivtach Shamir.
Diversification Opportunities for Phoenix Holdings and Mivtach Shamir
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Phoenix and Mivtach is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Mivtach Shamir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivtach Shamir 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 Mivtach Shamir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivtach Shamir has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Mivtach Shamir go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Mivtach Shamir
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 0.66 times more return on investment than Mivtach Shamir. However, The Phoenix Holdings is 1.52 times less risky than Mivtach Shamir. It trades about 0.32 of its potential returns per unit of risk. Mivtach Shamir is currently generating about 0.13 per unit of risk. If you would invest 420,000 in The Phoenix Holdings on August 29, 2024 and sell it today you would earn a total of 56,100 from holding The Phoenix Holdings or generate 13.36% 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. Mivtach Shamir
Performance |
| Timeline |
| Phoenix Holdings |
| Mivtach Shamir |
Phoenix Holdings and Mivtach Shamir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Mivtach Shamir
The main advantage of trading using opposite Phoenix Holdings and Mivtach Shamir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Mivtach Shamir 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 Mivtach Shamir will offset losses from the drop in Mivtach Shamir'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 |
| Mivtach Shamir vs. Elbit Systems | Mivtach Shamir vs. Discount Investment Corp | Mivtach Shamir vs. Clal Insurance Enterprises | Mivtach Shamir vs. AudioCodes |
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.
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