Correlation Between Alony Hetz and Knafaim
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Knafaim 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 Knafaim 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 Knafaim, you can compare the effects of market volatilities on Alony Hetz and Knafaim 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 Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Knafaim.
Diversification Opportunities for Alony Hetz and Knafaim
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alony and Knafaim is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Knafaim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knafaim 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 Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knafaim has no effect on the direction of Alony Hetz i.e., Alony Hetz and Knafaim go up and down completely randomly.
Pair Corralation between Alony Hetz and Knafaim
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 1.71 times more return on investment than Knafaim. However, Alony Hetz is 1.71 times more volatile than Knafaim. It trades about 0.11 of its potential returns per unit of risk. Knafaim is currently generating about 0.03 per unit of risk. If you would invest 299,000 in Alony Hetz Properties on August 29, 2024 and sell it today you would earn a total of 12,000 from holding Alony Hetz Properties or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Knafaim
Performance |
| Timeline |
| Alony Hetz Properties |
| Knafaim |
Alony Hetz and Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Knafaim
The main advantage of trading using opposite Alony Hetz and Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Knafaim 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 Knafaim will offset losses from the drop in Knafaim's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Knafaim vs. El Al Israel | Knafaim vs. Melisron | Knafaim vs. Global Knafaim Leasing | Knafaim vs. Bezeq Israeli Telecommunication |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |