Correlation Between Azrieli and Oil Refineries
Can any of the company-specific risk be diversified away by investing in both Azrieli and Oil Refineries 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 Oil Refineries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Oil Refineries, you can compare the effects of market volatilities on Azrieli and Oil Refineries 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 Oil Refineries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Oil Refineries.
Diversification Opportunities for Azrieli and Oil Refineries
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Azrieli and Oil is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Oil Refineries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Refineries 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 Oil Refineries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Refineries has no effect on the direction of Azrieli i.e., Azrieli and Oil Refineries go up and down completely randomly.
Pair Corralation between Azrieli and Oil Refineries
Assuming the 90 days trading horizon Azrieli Group is expected to generate 0.86 times more return on investment than Oil Refineries. However, Azrieli Group is 1.17 times less risky than Oil Refineries. It trades about 0.06 of its potential returns per unit of risk. Oil Refineries is currently generating about 0.01 per unit of risk. If you would invest 1,918,164 in Azrieli Group on December 1, 2024 and sell it today you would earn a total of 839,836 from holding Azrieli Group or generate 43.78% 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. Oil Refineries
Performance |
| Timeline |
| Azrieli Group |
| Oil Refineries |
Azrieli and Oil Refineries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azrieli and Oil Refineries
The main advantage of trading using opposite Azrieli and Oil Refineries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Oil Refineries 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 Oil Refineries will offset losses from the drop in Oil Refineries' long position.| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
| Oil Refineries vs. Delek Group | Oil Refineries vs. Bank Leumi Le Israel | Oil Refineries vs. ICL Israel Chemicals | Oil Refineries vs. Bank Hapoalim |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |