Correlation Between Ashot Ashkelon and Unitronics
Can any of the company-specific risk be diversified away by investing in both Ashot Ashkelon and Unitronics 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 Ashot Ashkelon and Unitronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashot Ashkelon Industries and Unitronics, you can compare the effects of market volatilities on Ashot Ashkelon and Unitronics 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 Ashot Ashkelon with a short position of Unitronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashot Ashkelon and Unitronics.
Diversification Opportunities for Ashot Ashkelon and Unitronics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ashot and Unitronics is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ashot Ashkelon Industries and Unitronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronics and Ashot Ashkelon 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 Ashot Ashkelon Industries are associated (or correlated) with Unitronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronics has no effect on the direction of Ashot Ashkelon i.e., Ashot Ashkelon and Unitronics go up and down completely randomly.
Pair Corralation between Ashot Ashkelon and Unitronics
Assuming the 90 days trading horizon Ashot Ashkelon Industries is expected to generate 1.32 times more return on investment than Unitronics. However, Ashot Ashkelon is 1.32 times more volatile than Unitronics. It trades about 0.13 of its potential returns per unit of risk. Unitronics is currently generating about 0.1 per unit of risk. If you would invest 134,553 in Ashot Ashkelon Industries on September 1, 2024 and sell it today you would earn a total of 298,447 from holding Ashot Ashkelon Industries or generate 221.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashot Ashkelon Industries vs. Unitronics
Performance |
| Timeline |
| Ashot Ashkelon Industries |
| Unitronics |
Ashot Ashkelon and Unitronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashot Ashkelon and Unitronics
The main advantage of trading using opposite Ashot Ashkelon and Unitronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashot Ashkelon position performs unexpectedly, Unitronics 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 Unitronics will offset losses from the drop in Unitronics' long position.| Ashot Ashkelon vs. Bet Shemesh Engines | Ashot Ashkelon vs. Elbit Systems | Ashot Ashkelon vs. Bezeq Israeli Telecommunication | Ashot Ashkelon vs. Rekah Pharmaceutical Industry |
| Unitronics vs. Utron | Unitronics vs. Rapac Communication Infrastructure | Unitronics vs. Accel Solutions Group | Unitronics vs. EN Shoham Business |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |