Correlation Between Azrieli and Ashtrom
Can any of the company-specific risk be diversified away by investing in both Azrieli and Ashtrom 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 Ashtrom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Ashtrom Group, you can compare the effects of market volatilities on Azrieli and Ashtrom 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 Ashtrom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Ashtrom.
Diversification Opportunities for Azrieli and Ashtrom
Modest diversification
The 3 months correlation between Azrieli and Ashtrom is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Ashtrom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtrom Group 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 Ashtrom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtrom Group has no effect on the direction of Azrieli i.e., Azrieli and Ashtrom go up and down completely randomly.
Pair Corralation between Azrieli and Ashtrom
Assuming the 90 days trading horizon Azrieli Group is expected to generate 0.65 times more return on investment than Ashtrom. However, Azrieli Group is 1.53 times less risky than Ashtrom. It trades about 0.21 of its potential returns per unit of risk. Ashtrom Group is currently generating about 0.12 per unit of risk. If you would invest 2,684,000 in Azrieli Group on October 26, 2024 and sell it today you would earn a total of 401,000 from holding Azrieli Group or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azrieli Group vs. Ashtrom Group
Performance |
| Timeline |
| Azrieli Group |
| Ashtrom Group |
Azrieli and Ashtrom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and Ashtrom
The main advantage of trading using opposite Azrieli and Ashtrom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Ashtrom 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 Ashtrom will offset losses from the drop in Ashtrom's long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| Ashtrom vs. Shikun Binui | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Amot Investments | Ashtrom vs. Azrieli Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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