Correlation Between Ashtrom and Prashkovsky
Can any of the company-specific risk be diversified away by investing in both Ashtrom and Prashkovsky 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 Prashkovsky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtrom Group and Prashkovsky, you can compare the effects of market volatilities on Ashtrom and Prashkovsky 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 Prashkovsky. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtrom and Prashkovsky.
Diversification Opportunities for Ashtrom and Prashkovsky
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ashtrom and Prashkovsky is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ashtrom Group and Prashkovsky in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prashkovsky 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 Prashkovsky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prashkovsky has no effect on the direction of Ashtrom i.e., Ashtrom and Prashkovsky go up and down completely randomly.
Pair Corralation between Ashtrom and Prashkovsky
Assuming the 90 days trading horizon Ashtrom Group is expected to generate 0.97 times more return on investment than Prashkovsky. However, Ashtrom Group is 1.03 times less risky than Prashkovsky. It trades about 0.36 of its potential returns per unit of risk. Prashkovsky is currently generating about 0.12 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. Prashkovsky
Performance |
| Timeline |
| Ashtrom Group |
| Prashkovsky |
Ashtrom and Prashkovsky Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtrom and Prashkovsky
The main advantage of trading using opposite Ashtrom and Prashkovsky positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtrom position performs unexpectedly, Prashkovsky 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 Prashkovsky will offset losses from the drop in Prashkovsky's long position.| Ashtrom vs. Arad | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Airport City | Ashtrom vs. Harel Insurance Investments |
| Prashkovsky vs. Fattal 1998 Holdings | Prashkovsky vs. Azrieli Group | Prashkovsky vs. Clal Insurance Enterprises |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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