Correlation Between Ashtrom and Azrieli
Can any of the company-specific risk be diversified away by investing in both Ashtrom and Azrieli 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 Ashtrom and Azrieli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtrom Group and Azrieli Group, you can compare the effects of market volatilities on Ashtrom and Azrieli 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 Ashtrom with a short position of Azrieli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtrom and Azrieli.
Diversification Opportunities for Ashtrom and Azrieli
Almost no diversification
The 3 months correlation between Ashtrom and Azrieli is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ashtrom Group and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli Group and Ashtrom 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 Ashtrom Group are associated (or correlated) with Azrieli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azrieli Group has no effect on the direction of Ashtrom i.e., Ashtrom and Azrieli go up and down completely randomly.
Pair Corralation between Ashtrom and Azrieli
Assuming the 90 days trading horizon Ashtrom Group is expected to generate 1.44 times more return on investment than Azrieli. However, Ashtrom is 1.44 times more volatile than Azrieli Group. It trades about 0.36 of its potential returns per unit of risk. Azrieli Group is currently generating about 0.08 per unit of risk. If you would invest 573,000 in Ashtrom Group on September 1, 2024 and sell it today you would earn a total of 63,800 from holding Ashtrom Group or generate 11.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtrom Group vs. Azrieli Group
Performance |
| Timeline |
| Ashtrom Group |
| Azrieli Group |
Ashtrom and Azrieli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtrom and Azrieli
The main advantage of trading using opposite Ashtrom and Azrieli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtrom position performs unexpectedly, Azrieli 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 Azrieli will offset losses from the drop in Azrieli's long position.| Ashtrom vs. Arad | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Airport City | Ashtrom vs. Harel Insurance Investments |
| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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