Correlation Between Phoenix Holdings and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Bezeq Israeli 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 Bezeq Israeli 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 Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Phoenix Holdings and Bezeq Israeli 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 Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Bezeq Israeli.
Diversification Opportunities for Phoenix Holdings and Bezeq Israeli
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phoenix and Bezeq is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco 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 Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Bezeq Israeli
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 1.59 times more return on investment than Bezeq Israeli. However, Phoenix Holdings is 1.59 times more volatile than Bezeq Israeli Telecommunication. It trades about -0.04 of its potential returns per unit of risk. Bezeq Israeli Telecommunication is currently generating about -0.13 per unit of risk. If you would invest 360,917 in The Phoenix Holdings on January 20, 2024 and sell it today you would lose (7,917) from holding The Phoenix Holdings or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Phoenix Holdings vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Phoenix Holdings |
| Bezeq Israeli Teleco |
Phoenix Holdings and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Bezeq Israeli
The main advantage of trading using opposite Phoenix Holdings and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli'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 |
| Bezeq Israeli vs. EN Shoham Business | Bezeq Israeli vs. Accel Solutions Group | Bezeq Israeli vs. SR Accord | Bezeq Israeli vs. Rapac Communication Infrastructure |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |