Correlation Between Phoenix Holdings and Ayalon Holdings
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Ayalon 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 Phoenix Holdings and Ayalon Holdings 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 Ayalon Holdings, you can compare the effects of market volatilities on Phoenix Holdings and Ayalon 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 Phoenix Holdings with a short position of Ayalon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Ayalon Holdings.
Diversification Opportunities for Phoenix Holdings and Ayalon Holdings
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phoenix and Ayalon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Ayalon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayalon Holdings 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 Ayalon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayalon Holdings has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Ayalon Holdings go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Ayalon Holdings
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 0.85 times more return on investment than Ayalon Holdings. However, The Phoenix Holdings is 1.17 times less risky than Ayalon Holdings. It trades about 0.01 of its potential returns per unit of risk. Ayalon Holdings is currently generating about -0.22 per unit of risk. If you would invest 358,386 in The Phoenix Holdings on January 17, 2024 and sell it today you would earn a total of 114.00 from holding The Phoenix Holdings or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Phoenix Holdings vs. Ayalon Holdings
Performance |
| Timeline |
| Phoenix Holdings |
| Ayalon Holdings |
Phoenix Holdings and Ayalon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Ayalon Holdings
The main advantage of trading using opposite Phoenix Holdings and Ayalon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Ayalon 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 Ayalon Holdings will offset losses from the drop in Ayalon Holdings' 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 |
| Ayalon Holdings vs. Clal Insurance Enterprises | Ayalon Holdings vs. Migdal Insurance | Ayalon Holdings vs. Harel Insurance Investments | Ayalon Holdings vs. Menora Miv Hld |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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