Correlation Between Alony Hetz and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Gamatronic Electronic 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 Gamatronic Electronic 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 Gamatronic Electronic Industries, you can compare the effects of market volatilities on Alony Hetz and Gamatronic Electronic 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 Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Gamatronic Electronic.
Diversification Opportunities for Alony Hetz and Gamatronic Electronic
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alony and Gamatronic is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic 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 Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of Alony Hetz i.e., Alony Hetz and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between Alony Hetz and Gamatronic Electronic
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 0.83 times more return on investment than Gamatronic Electronic. However, Alony Hetz Properties is 1.21 times less risky than Gamatronic Electronic. It trades about 0.09 of its potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about -0.05 per unit of risk. If you would invest 253,614 in Alony Hetz Properties on September 1, 2024 and sell it today you would earn a total of 55,086 from holding Alony Hetz Properties or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Gamatronic Electronic Industri
Performance |
| Timeline |
| Alony Hetz Properties |
| Gamatronic Electronic |
Alony Hetz and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Gamatronic Electronic
The main advantage of trading using opposite Alony Hetz and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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