Correlation Between Alony Hetz and Delek
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Delek 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 Delek 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 Delek Group, you can compare the effects of market volatilities on Alony Hetz and Delek 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 Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Delek.
Diversification Opportunities for Alony Hetz and Delek
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alony and Delek is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek 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 Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Alony Hetz i.e., Alony Hetz and Delek go up and down completely randomly.
Pair Corralation between Alony Hetz and Delek
Assuming the 90 days trading horizon Alony Hetz is expected to generate 1.8 times less return on investment than Delek. In addition to that, Alony Hetz is 1.2 times more volatile than Delek Group. It trades about 0.02 of its total potential returns per unit of risk. Delek Group is currently generating about 0.05 per unit of volatility. If you would invest 3,704,528 in Delek Group on August 27, 2024 and sell it today you would earn a total of 981,472 from holding Delek Group or generate 26.49% 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. Delek Group
Performance |
| Timeline |
| Alony Hetz Properties |
| Delek Group |
Alony Hetz and Delek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Delek
The main advantage of trading using opposite Alony Hetz and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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