Correlation Between Azrieli and Creative Media
Can any of the company-specific risk be diversified away by investing in both Azrieli and Creative Media 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 Creative Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Creative Media Community, you can compare the effects of market volatilities on Azrieli and Creative Media 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 Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Creative Media.
Diversification Opportunities for Azrieli and Creative Media
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Azrieli and Creative is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community 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 Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Azrieli i.e., Azrieli and Creative Media go up and down completely randomly.
Pair Corralation between Azrieli and Creative Media
Assuming the 90 days trading horizon Azrieli is expected to generate 15.62 times less return on investment than Creative Media. But when comparing it to its historical volatility, Azrieli Group is 23.87 times less risky than Creative Media. It trades about 0.05 of its potential returns per unit of risk. Creative Media Community is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 167,800 in Creative Media Community on November 27, 2024 and sell it today you would lose (143,540) from holding Creative Media Community or give up 85.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azrieli Group vs. Creative Media Community
Performance |
| Timeline |
| Azrieli Group |
| Creative Media Community |
Azrieli and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and Creative Media
The main advantage of trading using opposite Azrieli and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media's long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| Creative Media vs. Nice | Creative Media vs. The Gold Bond | Creative Media vs. Bank Leumi Le Israel | Creative Media vs. ICL Israel Chemicals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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