Correlation Between Azrieli and Maytronics
Can any of the company-specific risk be diversified away by investing in both Azrieli and Maytronics 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 Maytronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Maytronics, you can compare the effects of market volatilities on Azrieli and Maytronics 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 Maytronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Maytronics.
Diversification Opportunities for Azrieli and Maytronics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Azrieli and Maytronics is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Maytronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maytronics 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 Maytronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maytronics has no effect on the direction of Azrieli i.e., Azrieli and Maytronics go up and down completely randomly.
Pair Corralation between Azrieli and Maytronics
Assuming the 90 days trading horizon Azrieli Group is expected to generate 0.53 times more return on investment than Maytronics. However, Azrieli Group is 1.88 times less risky than Maytronics. It trades about 0.06 of its potential returns per unit of risk. Maytronics is currently generating about -0.09 per unit of risk. If you would invest 2,072,045 in Azrieli Group on August 29, 2024 and sell it today you would earn a total of 867,955 from holding Azrieli Group or generate 41.89% 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. Maytronics
Performance |
| Timeline |
| Azrieli Group |
| Maytronics |
Azrieli and Maytronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and Maytronics
The main advantage of trading using opposite Azrieli and Maytronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Maytronics 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 Maytronics will offset losses from the drop in Maytronics' long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| Maytronics vs. Direct Capital Investments | Maytronics vs. Safe T Group | Maytronics vs. Israel China Biotechnology | Maytronics vs. Biomedix Incubator |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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