Correlation Between Menora Miv and Phoenix Holdings
Can any of the company-specific risk be diversified away by investing in both Menora Miv and Phoenix 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 Menora Miv and Phoenix Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menora Miv Hld and The Phoenix Holdings, you can compare the effects of market volatilities on Menora Miv and Phoenix 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 Menora Miv with a short position of Phoenix Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menora Miv and Phoenix Holdings.
Diversification Opportunities for Menora Miv and Phoenix Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Menora and Phoenix is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Menora Miv Hld and The Phoenix Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Holdings and Menora Miv 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 Menora Miv Hld are associated (or correlated) with Phoenix Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Holdings has no effect on the direction of Menora Miv i.e., Menora Miv and Phoenix Holdings go up and down completely randomly.
Pair Corralation between Menora Miv and Phoenix Holdings
Assuming the 90 days trading horizon Menora Miv Hld is expected to generate 1.07 times more return on investment than Phoenix Holdings. However, Menora Miv is 1.07 times more volatile than The Phoenix Holdings. It trades about 0.05 of its potential returns per unit of risk. The Phoenix Holdings is currently generating about 0.03 per unit of risk. If you would invest 658,422 in Menora Miv Hld on February 8, 2024 and sell it today you would earn a total of 268,178 from holding Menora Miv Hld or generate 40.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Menora Miv Hld vs. The Phoenix Holdings
Performance |
Timeline |
Menora Miv Hld |
Phoenix Holdings |
Menora Miv and Phoenix Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Menora Miv and Phoenix Holdings
The main advantage of trading using opposite Menora Miv and Phoenix Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menora Miv position performs unexpectedly, Phoenix 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 Phoenix Holdings will offset losses from the drop in Phoenix Holdings' long position.Menora Miv vs. Harel Insurance Investments | Menora Miv vs. Migdal Insurance | Menora Miv vs. Clal Insurance Enterprises | Menora Miv vs. The Phoenix Holdings |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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