Correlation Between Alony Hetz and Summit
Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Summit 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 Summit 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 Summit, you can compare the effects of market volatilities on Alony Hetz and Summit 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 Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Summit.
Diversification Opportunities for Alony Hetz and Summit
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Alony and Summit is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Summit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit 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 Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit has no effect on the direction of Alony Hetz i.e., Alony Hetz and Summit go up and down completely randomly.
Pair Corralation between Alony Hetz and Summit
Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 0.74 times more return on investment than Summit. However, Alony Hetz Properties is 1.36 times less risky than Summit. It trades about 0.11 of its potential returns per unit of risk. Summit is currently generating about 0.05 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alony Hetz Properties vs. Summit
Performance |
| Timeline |
| Alony Hetz Properties |
| Summit |
Alony Hetz and Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alony Hetz and Summit
The main advantage of trading using opposite Alony Hetz and Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Summit 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 Summit will offset losses from the drop in Summit's long position.| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
| Summit vs. Israel Canada | Summit vs. Delek Group | Summit vs. Shikun Binui | Summit 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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