Correlation Between Azrieli and GFC Green
Can any of the company-specific risk be diversified away by investing in both Azrieli and GFC Green 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 GFC Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and GFC Green Fields, you can compare the effects of market volatilities on Azrieli and GFC Green 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 GFC Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and GFC Green.
Diversification Opportunities for Azrieli and GFC Green
Pay attention - limited upside
The 3 months correlation between Azrieli and GFC is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and GFC Green Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFC Green Fields 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 GFC Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFC Green Fields has no effect on the direction of Azrieli i.e., Azrieli and GFC Green go up and down completely randomly.
Pair Corralation between Azrieli and GFC Green
If you would invest 2,859,000 in Azrieli Group on September 2, 2024 and sell it today you would earn a total of 51,000 from holding Azrieli Group or generate 1.78% 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. GFC Green Fields
Performance |
| Timeline |
| Azrieli Group |
| GFC Green Fields |
Azrieli and GFC Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and GFC Green
The main advantage of trading using opposite Azrieli and GFC Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, GFC Green 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 GFC Green will offset losses from the drop in GFC Green's long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| GFC Green vs. Isras Investment | GFC Green vs. Bezeq Israeli Telecommunication | GFC Green vs. Adgar Investments and | GFC Green vs. Oron Group Investments |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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