Correlation Between Delek and Azrieli
Can any of the company-specific risk be diversified away by investing in both Delek and Azrieli 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 Delek and Azrieli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Azrieli Group, you can compare the effects of market volatilities on Delek and Azrieli 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 Delek with a short position of Azrieli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Azrieli.
Diversification Opportunities for Delek and Azrieli
Very poor diversification
The 3 months correlation between Delek and Azrieli is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli Group and Delek 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 Delek Group are associated (or correlated) with Azrieli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azrieli Group has no effect on the direction of Delek i.e., Delek and Azrieli go up and down completely randomly.
Pair Corralation between Delek and Azrieli
Assuming the 90 days trading horizon Delek Group is expected to generate 1.3 times more return on investment than Azrieli. However, Delek is 1.3 times more volatile than Azrieli Group. It trades about 0.04 of its potential returns per unit of risk. Azrieli Group is currently generating about 0.04 per unit of risk. If you would invest 3,521,492 in Delek Group on August 27, 2024 and sell it today you would earn a total of 1,164,508 from holding Delek Group or generate 33.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Group vs. Azrieli Group
Performance |
| Timeline |
| Delek Group |
| Azrieli Group |
Delek and Azrieli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Azrieli
The main advantage of trading using opposite Delek and Azrieli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Azrieli 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 Azrieli will offset losses from the drop in Azrieli's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |