Correlation Between Ashtrom and Kardan Real
Can any of the company-specific risk be diversified away by investing in both Ashtrom and Kardan Real 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 Kardan Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtrom Group and Kardan Real Estate, you can compare the effects of market volatilities on Ashtrom and Kardan Real 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 Kardan Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtrom and Kardan Real.
Diversification Opportunities for Ashtrom and Kardan Real
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashtrom and Kardan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ashtrom Group and Kardan Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardan Real Estate 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 Kardan Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardan Real Estate has no effect on the direction of Ashtrom i.e., Ashtrom and Kardan Real go up and down completely randomly.
Pair Corralation between Ashtrom and Kardan Real
Assuming the 90 days trading horizon Ashtrom Group is expected to under-perform the Kardan Real. But the stock apears to be less risky and, when comparing its historical volatility, Ashtrom Group is 1.53 times less risky than Kardan Real. The stock trades about -0.05 of its potential returns per unit of risk. The Kardan Real Estate is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 58,500 in Kardan Real Estate on November 29, 2024 and sell it today you would earn a total of 4,380 from holding Kardan Real Estate or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtrom Group vs. Kardan Real Estate
Performance |
| Timeline |
| Ashtrom Group |
| Kardan Real Estate |
Ashtrom and Kardan Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtrom and Kardan Real
The main advantage of trading using opposite Ashtrom and Kardan Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtrom position performs unexpectedly, Kardan Real 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 Kardan Real will offset losses from the drop in Kardan Real's long position.| Ashtrom vs. Shikun Binui | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Amot Investments | Ashtrom vs. Azrieli Group |
| Kardan Real vs. Netanel Group | Kardan Real vs. Ashtrom Group | Kardan Real vs. Palram | Kardan Real vs. Israel Canada |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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