Correlation Between Israel Canada and Ashtrom
Can any of the company-specific risk be diversified away by investing in both Israel Canada and Ashtrom 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 Israel Canada and Ashtrom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel Canada and Ashtrom Group, you can compare the effects of market volatilities on Israel Canada and Ashtrom 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 Israel Canada with a short position of Ashtrom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Canada and Ashtrom.
Diversification Opportunities for Israel Canada and Ashtrom
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Israel and Ashtrom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Israel Canada and Ashtrom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtrom Group and Israel Canada 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 Israel Canada are associated (or correlated) with Ashtrom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtrom Group has no effect on the direction of Israel Canada i.e., Israel Canada and Ashtrom go up and down completely randomly.
Pair Corralation between Israel Canada and Ashtrom
Assuming the 90 days trading horizon Israel Canada is expected to under-perform the Ashtrom. In addition to that, Israel Canada is 1.51 times more volatile than Ashtrom Group. It trades about -0.3 of its total potential returns per unit of risk. Ashtrom Group is currently generating about 0.08 per unit of volatility. If you would invest 616,000 in Ashtrom Group on November 22, 2024 and sell it today you would earn a total of 10,100 from holding Ashtrom Group or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Israel Canada vs. Ashtrom Group
Performance |
| Timeline |
| Israel Canada |
| Ashtrom Group |
Israel Canada and Ashtrom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel Canada and Ashtrom
The main advantage of trading using opposite Israel Canada and Ashtrom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Canada position performs unexpectedly, Ashtrom 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 Ashtrom will offset losses from the drop in Ashtrom's long position.| Israel Canada vs. Azrieli Group | Israel Canada vs. Shikun Binui | Israel Canada vs. Ashtrom Group | Israel Canada vs. Enlight Renewable Energy |
| Ashtrom vs. Shikun Binui | Ashtrom vs. Alony Hetz Properties | Ashtrom vs. Amot Investments | Ashtrom vs. Azrieli Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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