Correlation Between Alony Hetz and Netanel
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Netanel 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 Netanel 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 Netanel Group, you can compare the effects of market volatilities on Alony Hetz and Netanel 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 Netanel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Netanel.
Diversification Opportunities for Alony Hetz and Netanel
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alony and Netanel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Netanel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netanel 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 Netanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netanel Group has no effect on the direction of Alony Hetz i.e., Alony Hetz and Netanel go up and down completely randomly.
Pair Corralation between Alony Hetz and Netanel
Assuming the 90 days trading horizon Alony Hetz is expected to generate 2.21 times less return on investment than Netanel. In addition to that, Alony Hetz is 1.21 times more volatile than Netanel Group. It trades about 0.04 of its total potential returns per unit of risk. Netanel Group is currently generating about 0.12 per unit of volatility. If you would invest 85,300 in Netanel Group on September 4, 2024 and sell it today you would earn a total of 45,700 from holding Netanel Group or generate 53.58% 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. Netanel Group
Performance |
| Timeline |
| Alony Hetz Properties |
| Netanel Group |
Alony Hetz and Netanel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Netanel
The main advantage of trading using opposite Alony Hetz and Netanel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Netanel 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 Netanel will offset losses from the drop in Netanel's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Netanel vs. EN Shoham Business | Netanel vs. Rani Zim Shopping | Netanel vs. Accel Solutions Group | Netanel vs. Mivtach Shamir |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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