Correlation Between Aerodrome and FIBI Holdings
Can any of the company-specific risk be diversified away by investing in both Aerodrome and FIBI Holdings 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 Aerodrome and FIBI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerodrome Group and FIBI Holdings, you can compare the effects of market volatilities on Aerodrome and FIBI Holdings 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 Aerodrome with a short position of FIBI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerodrome and FIBI Holdings.
Diversification Opportunities for Aerodrome and FIBI Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aerodrome and FIBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerodrome Group and FIBI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBI Holdings and Aerodrome 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 Aerodrome Group are associated (or correlated) with FIBI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBI Holdings has no effect on the direction of Aerodrome i.e., Aerodrome and FIBI Holdings go up and down completely randomly.
Pair Corralation between Aerodrome and FIBI Holdings
Assuming the 90 days trading horizon Aerodrome Group is expected to generate 2.07 times more return on investment than FIBI Holdings. However, Aerodrome is 2.07 times more volatile than FIBI Holdings. It trades about 0.16 of its potential returns per unit of risk. FIBI Holdings is currently generating about -0.06 per unit of risk. If you would invest 7,600 in Aerodrome Group on January 20, 2024 and sell it today you would earn a total of 1,070 from holding Aerodrome Group or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerodrome Group vs. FIBI Holdings
Performance |
| Timeline |
| Aerodrome Group |
| FIBI Holdings |
Aerodrome and FIBI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerodrome and FIBI Holdings
The main advantage of trading using opposite Aerodrome and FIBI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerodrome position performs unexpectedly, FIBI Holdings 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 FIBI Holdings will offset losses from the drop in FIBI Holdings' long position.| Aerodrome vs. EN Shoham Business | Aerodrome vs. Accel Solutions Group | Aerodrome vs. SR Accord | Aerodrome vs. Rapac Communication Infrastructure |
| FIBI Holdings vs. First International Bank | FIBI Holdings vs. Mizrahi Tefahot | FIBI Holdings vs. Israel Discount Bank | FIBI Holdings 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |