Correlation Between Phoenix Holdings and Kamada
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Kamada 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 Kamada 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 Kamada, you can compare the effects of market volatilities on Phoenix Holdings and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Kamada.
Diversification Opportunities for Phoenix Holdings and Kamada
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Phoenix and Kamada is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Kamada go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Kamada
Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 1.49 times more return on investment than Kamada. However, Phoenix Holdings is 1.49 times more volatile than Kamada. It trades about -0.05 of its potential returns per unit of risk. Kamada is currently generating about -0.17 per unit of risk. If you would invest 362,182 in The Phoenix Holdings on January 25, 2024 and sell it today you would lose (9,182) from holding The Phoenix Holdings or give up 2.54% 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. Kamada
Performance |
| Timeline |
| Phoenix Holdings |
| Kamada |
Phoenix Holdings and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Kamada
The main advantage of trading using opposite Phoenix Holdings and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |