Correlation Between Alony Hetz and Baran
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Baran 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 Alony Hetz and Baran into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alony Hetz Properties and Baran Group, you can compare the effects of market volatilities on Alony Hetz and Baran 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 Alony Hetz with a short position of Baran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Baran.
Diversification Opportunities for Alony Hetz and Baran
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alony and Baran is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Baran Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baran Group and Alony Hetz 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 Alony Hetz Properties are associated (or correlated) with Baran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baran Group has no effect on the direction of Alony Hetz i.e., Alony Hetz and Baran go up and down completely randomly.
Pair Corralation between Alony Hetz and Baran
Assuming the 90 days trading horizon Alony Hetz is expected to generate 2.63 times less return on investment than Baran. But when comparing it to its historical volatility, Alony Hetz Properties is 1.28 times less risky than Baran. It trades about 0.05 of its potential returns per unit of risk. Baran Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 133,500 in Baran Group on September 1, 2024 and sell it today you would earn a total of 6,500 from holding Baran Group or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Baran Group
Performance |
| Timeline |
| Alony Hetz Properties |
| Baran Group |
Alony Hetz and Baran Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Baran
The main advantage of trading using opposite Alony Hetz and Baran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Baran 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 Baran will offset losses from the drop in Baran's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Baran vs. Rapac Communication Infrastructure | Baran vs. Elron Electronic Industries | Baran vs. Lesico | Baran vs. Palram |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |