Correlation Between Alony Hetz and Dan Hotels
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Dan Hotels 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 Dan Hotels 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 Dan Hotels, you can compare the effects of market volatilities on Alony Hetz and Dan Hotels 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 Dan Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Dan Hotels.
Diversification Opportunities for Alony Hetz and Dan Hotels
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alony and Dan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Dan Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dan Hotels 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 Dan Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dan Hotels has no effect on the direction of Alony Hetz i.e., Alony Hetz and Dan Hotels go up and down completely randomly.
Pair Corralation between Alony Hetz and Dan Hotels
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 1.16 times more return on investment than Dan Hotels. However, Alony Hetz is 1.16 times more volatile than Dan Hotels. It trades about 0.04 of its potential returns per unit of risk. Dan Hotels is currently generating about 0.02 per unit of risk. If you would invest 272,480 in Alony Hetz Properties on November 27, 2024 and sell it today you would earn a total of 69,520 from holding Alony Hetz Properties or generate 25.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Dan Hotels
Performance |
| Timeline |
| Alony Hetz Properties |
| Dan Hotels |
Alony Hetz and Dan Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Dan Hotels
The main advantage of trading using opposite Alony Hetz and Dan Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Dan Hotels 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 Dan Hotels will offset losses from the drop in Dan Hotels' long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Dan Hotels vs. Skyline Investments | Dan Hotels vs. Suny Cellular Communication | Dan Hotels vs. Azorim Investment Development | Dan Hotels vs. Isras 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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