Correlation Between Phoenix Holdings and Menora Miv

Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings and Menora Miv 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 Menora Miv 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 Menora Miv Hld, you can compare the effects of market volatilities on Phoenix Holdings and Menora Miv 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 Menora Miv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Menora Miv.

Diversification Opportunities for Phoenix Holdings and Menora Miv

0.22

Correlation Coefficient

Phoenix Holdings  Menora Miv

Modest diversification

The 3 months correlation between Phoenix and Menora is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Menora Miv Hld in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menora Miv Hld 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 Menora Miv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menora Miv Hld has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Menora Miv go up and down completely randomly.

Pair Corralation between Phoenix Holdings and Menora Miv

Assuming the 90 days trading horizon Phoenix Holdings is expected to generate 2.69 times less return on investment than Menora Miv. But when comparing it to its historical volatility, The Phoenix Holdings is 1.02 times less risky than Menora Miv. It trades about 0.02 of its potential returns per unit of risk. Menora Miv Hld is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  650,369  in Menora Miv Hld on February 1, 2024 and sell it today you would earn a total of  250,831  from holding Menora Miv Hld or generate 38.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

The Phoenix Holdings  vs.  Menora Miv Hld

Phoenix Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Phoenix Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Phoenix Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Menora Miv Hld

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Menora Miv Hld has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Menora Miv is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Phoenix Holdings and Menora Miv

The main advantage of trading using opposite Phoenix Holdings and Menora Miv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings position performs unexpectedly, Menora Miv 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 Menora Miv will offset losses from the drop in Menora Miv's long position.

The idea behind The Phoenix Holdings and Menora Miv Hld pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.