Correlation Between Alony Hetz and Nextgen
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Nextgen 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 Nextgen 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 Nextgen, you can compare the effects of market volatilities on Alony Hetz and Nextgen 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 Nextgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Nextgen.
Diversification Opportunities for Alony Hetz and Nextgen
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alony and Nextgen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Nextgen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen 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 Nextgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen has no effect on the direction of Alony Hetz i.e., Alony Hetz and Nextgen go up and down completely randomly.
Pair Corralation between Alony Hetz and Nextgen
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 0.49 times more return on investment than Nextgen. However, Alony Hetz Properties is 2.04 times less risky than Nextgen. It trades about 0.15 of its potential returns per unit of risk. Nextgen is currently generating about -0.12 per unit of risk. If you would invest 319,500 in Alony Hetz Properties on November 28, 2024 and sell it today you would earn a total of 24,700 from holding Alony Hetz Properties or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Nextgen
Performance |
| Timeline |
| Alony Hetz Properties |
| Nextgen |
Alony Hetz and Nextgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Nextgen
The main advantage of trading using opposite Alony Hetz and Nextgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Nextgen 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 Nextgen will offset losses from the drop in Nextgen's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Nextgen vs. Clal Biotechnology Industries | Nextgen vs. Spuntech | Nextgen vs. Orbit Technologies | Nextgen vs. Rimon Consulting Management |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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