Correlation Between Alony Hetz and Shufersal
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Shufersal 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 Shufersal 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 Shufersal, you can compare the effects of market volatilities on Alony Hetz and Shufersal 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 Shufersal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Shufersal.
Diversification Opportunities for Alony Hetz and Shufersal
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alony and Shufersal is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Shufersal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shufersal 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 Shufersal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shufersal has no effect on the direction of Alony Hetz i.e., Alony Hetz and Shufersal go up and down completely randomly.
Pair Corralation between Alony Hetz and Shufersal
Assuming the 90 days trading horizon Alony Hetz Properties is expected to under-perform the Shufersal. In addition to that, Alony Hetz is 1.11 times more volatile than Shufersal. It trades about -0.08 of its total potential returns per unit of risk. Shufersal is currently generating about 0.19 per unit of volatility. If you would invest 331,700 in Shufersal on August 28, 2024 and sell it today you would earn a total of 15,000 from holding Shufersal or generate 4.52% 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. Shufersal
Performance |
| Timeline |
| Alony Hetz Properties |
| Shufersal |
Alony Hetz and Shufersal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Shufersal
The main advantage of trading using opposite Alony Hetz and Shufersal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Shufersal 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 Shufersal will offset losses from the drop in Shufersal's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Shufersal vs. Rami Levi | Shufersal vs. Bezeq Israeli Telecommunication | Shufersal vs. Bank Hapoalim | Shufersal vs. Bank Leumi Le Israel |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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