Correlation Between Azrieli and Apollo Power
Can any of the company-specific risk be diversified away by investing in both Azrieli and Apollo Power 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 Azrieli and Apollo Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Apollo Power, you can compare the effects of market volatilities on Azrieli and Apollo Power 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 Azrieli with a short position of Apollo Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Apollo Power.
Diversification Opportunities for Azrieli and Apollo Power
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Azrieli and Apollo is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Apollo Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Power and Azrieli 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 Azrieli Group are associated (or correlated) with Apollo Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Power has no effect on the direction of Azrieli i.e., Azrieli and Apollo Power go up and down completely randomly.
Pair Corralation between Azrieli and Apollo Power
Assuming the 90 days trading horizon Azrieli Group is expected to generate 0.38 times more return on investment than Apollo Power. However, Azrieli Group is 2.61 times less risky than Apollo Power. It trades about 0.22 of its potential returns per unit of risk. Apollo Power is currently generating about -0.7 per unit of risk. If you would invest 2,684,000 in Azrieli Group on August 24, 2024 and sell it today you would earn a total of 166,000 from holding Azrieli Group or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azrieli Group vs. Apollo Power
Performance |
| Timeline |
| Azrieli Group |
| Apollo Power |
Azrieli and Apollo Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and Apollo Power
The main advantage of trading using opposite Azrieli and Apollo Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Apollo Power 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 Apollo Power will offset losses from the drop in Apollo Power's long position.| Azrieli vs. Israel Canada | Azrieli vs. Delek Group | Azrieli vs. Shikun Binui | Azrieli vs. Israel Discount Bank |
| Apollo Power vs. Analyst IMS Investment | Apollo Power vs. Rapac Communication Infrastructure | Apollo Power vs. B Communications | Apollo Power vs. Sure Tech Investments LP |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |