Correlation Between Azrieli and YH Dimri
Can any of the company-specific risk be diversified away by investing in both Azrieli and YH Dimri 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 YH Dimri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and YH Dimri Construction, you can compare the effects of market volatilities on Azrieli and YH Dimri 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 YH Dimri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and YH Dimri.
Diversification Opportunities for Azrieli and YH Dimri
Very good diversification
The 3 months correlation between Azrieli and DIMRI is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and YH Dimri Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YH Dimri Construction 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 YH Dimri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YH Dimri Construction has no effect on the direction of Azrieli i.e., Azrieli and YH Dimri go up and down completely randomly.
Pair Corralation between Azrieli and YH Dimri
Assuming the 90 days trading horizon Azrieli Group is expected to generate 0.74 times more return on investment than YH Dimri. However, Azrieli Group is 1.36 times less risky than YH Dimri. It trades about 0.38 of its potential returns per unit of risk. YH Dimri Construction is currently generating about 0.05 per unit of risk. If you would invest 2,929,000 in Azrieli Group on October 23, 2024 and sell it today you would earn a total of 212,000 from holding Azrieli Group or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azrieli Group vs. YH Dimri Construction
Performance |
| Timeline |
| Azrieli Group |
| YH Dimri Construction |
Azrieli and YH Dimri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and YH Dimri
The main advantage of trading using opposite Azrieli and YH Dimri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, YH Dimri 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 YH Dimri will offset losses from the drop in YH Dimri's long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| YH Dimri vs. Azrieli Group | YH Dimri vs. Israel Canada | YH Dimri vs. Ashtrom Group | YH Dimri vs. Shikun Binui |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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