Correlation Between Delek and Propert Buil
Can any of the company-specific risk be diversified away by investing in both Delek and Propert Buil 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 Propert Buil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Group and Propert Buil, you can compare the effects of market volatilities on Delek and Propert Buil 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 Propert Buil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek and Propert Buil.
Diversification Opportunities for Delek and Propert Buil
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delek and Propert is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Delek Group and Propert Buil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Propert Buil 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 Propert Buil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Propert Buil has no effect on the direction of Delek i.e., Delek and Propert Buil go up and down completely randomly.
Pair Corralation between Delek and Propert Buil
Assuming the 90 days trading horizon Delek Group is expected to generate 0.8 times more return on investment than Propert Buil. However, Delek Group is 1.25 times less risky than Propert Buil. It trades about 0.06 of its potential returns per unit of risk. Propert Buil is currently generating about 0.03 per unit of risk. If you would invest 2,934,577 in Delek Group on August 27, 2024 and sell it today you would earn a total of 1,751,423 from holding Delek Group or generate 59.68% 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. Propert Buil
Performance |
| Timeline |
| Delek Group |
| Propert Buil |
Delek and Propert Buil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek and Propert Buil
The main advantage of trading using opposite Delek and Propert Buil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek position performs unexpectedly, Propert Buil 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 Propert Buil will offset losses from the drop in Propert Buil's long position.| Delek vs. Fattal 1998 Holdings | Delek vs. El Al Israel | Delek vs. Bank Leumi Le Israel | Delek vs. Teva Pharmaceutical Industries |
| Propert Buil vs. Israel Canada | Propert Buil vs. Delek Group | Propert Buil vs. Shikun Binui | Propert Buil 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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