Correlation Between YH Dimri and Alony Hetz
Can any of the company-specific risk be diversified away by investing in both YH Dimri and Alony Hetz 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 YH Dimri and Alony Hetz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YH Dimri Construction and Alony Hetz Properties, you can compare the effects of market volatilities on YH Dimri and Alony Hetz 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 YH Dimri with a short position of Alony Hetz. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and Alony Hetz.
Diversification Opportunities for YH Dimri and Alony Hetz
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DIMRI and Alony is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction and Alony Hetz Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alony Hetz Properties and YH Dimri 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 YH Dimri Construction are associated (or correlated) with Alony Hetz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alony Hetz Properties has no effect on the direction of YH Dimri i.e., YH Dimri and Alony Hetz go up and down completely randomly.
Pair Corralation between YH Dimri and Alony Hetz
Assuming the 90 days trading horizon YH Dimri Construction is expected to generate 0.76 times more return on investment than Alony Hetz. However, YH Dimri Construction is 1.32 times less risky than Alony Hetz. It trades about 0.1 of its potential returns per unit of risk. Alony Hetz Properties is currently generating about 0.05 per unit of risk. If you would invest 2,708,041 in YH Dimri Construction on August 25, 2024 and sell it today you would earn a total of 709,959 from holding YH Dimri Construction or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YH Dimri Construction vs. Alony Hetz Properties
Performance |
| Timeline |
| YH Dimri Construction |
| Alony Hetz Properties |
YH Dimri and Alony Hetz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YH Dimri and Alony Hetz
The main advantage of trading using opposite YH Dimri and Alony Hetz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YH Dimri position performs unexpectedly, Alony Hetz 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 Alony Hetz will offset losses from the drop in Alony Hetz's long position.| YH Dimri vs. Israel Canada | YH Dimri vs. Azrieli Group | YH Dimri vs. Delek Group | YH Dimri vs. Shikun Binui |
| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz vs. Israel Discount Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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