Correlation Between Phoenix Holdings and Shaniv

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

Diversification Opportunities for Phoenix Holdings and Shaniv

0.94

Correlation Coefficient

Phoenix Holdings  Shaniv

Almost no diversification

The 3 months correlation between Phoenix and Shaniv is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Shaniv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaniv 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 Shaniv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaniv has no effect on the direction of Phoenix Holdings i.e., Phoenix Holdings and Shaniv go up and down completely randomly.

Pair Corralation between Phoenix Holdings and Shaniv

Assuming the 90 days trading horizon The Phoenix Holdings is expected to generate 0.62 times more return on investment than Shaniv. However, The Phoenix Holdings is 1.6 times less risky than Shaniv. It trades about 0.41 of its potential returns per unit of risk. Shaniv is currently generating about 0.18 per unit of risk. If you would invest  459,800  in The Phoenix Holdings on September 30, 2024 and sell it today you would earn a total of  58,200  from holding The Phoenix Holdings or generate 12.66% return on investment over 90 days.

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

The Phoenix Holdings  vs.  Shaniv

Phoenix Holdings

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Phoenix Holdings are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Phoenix Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Shaniv

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Shaniv are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shaniv sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phoenix Holdings and Shaniv

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

The idea behind The Phoenix Holdings and Shaniv 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.