Correlation Between Alony Hetz and Electra
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Electra 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 Electra 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 Electra, you can compare the effects of market volatilities on Alony Hetz and Electra 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 Electra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Electra.
Diversification Opportunities for Alony Hetz and Electra
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alony and Electra is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Electra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra 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 Electra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra has no effect on the direction of Alony Hetz i.e., Alony Hetz and Electra go up and down completely randomly.
Pair Corralation between Alony Hetz and Electra
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 2.24 times more return on investment than Electra. However, Alony Hetz is 2.24 times more volatile than Electra. It trades about 0.3 of its potential returns per unit of risk. Electra is currently generating about 0.06 per unit of risk. If you would invest 308,200 in Alony Hetz Properties on November 8, 2024 and sell it today you would earn a total of 59,200 from holding Alony Hetz Properties or generate 19.21% 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. Electra
Performance |
| Timeline |
| Alony Hetz Properties |
| Electra |
Alony Hetz and Electra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Electra
The main advantage of trading using opposite Alony Hetz and Electra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Electra 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 Electra will offset losses from the drop in Electra's long position.| Alony Hetz vs. Delek Group | Alony Hetz vs. Fattal 1998 Holdings | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron |
| Electra vs. Alony Hetz Properties | Electra vs. Melisron | Electra vs. Shufersal | Electra vs. Israel Discount Bank |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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