Correlation Between Prashkovsky and Ashtrom
Can any of the company-specific risk be diversified away by investing in both Prashkovsky 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 Prashkovsky and Ashtrom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prashkovsky and Ashtrom Group, you can compare the effects of market volatilities on Prashkovsky 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 Prashkovsky with a short position of Ashtrom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prashkovsky and Ashtrom.
Diversification Opportunities for Prashkovsky and Ashtrom
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prashkovsky and Ashtrom is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Prashkovsky and Ashtrom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtrom Group and Prashkovsky 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 Prashkovsky 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 Prashkovsky i.e., Prashkovsky and Ashtrom go up and down completely randomly.
Pair Corralation between Prashkovsky and Ashtrom
Assuming the 90 days trading horizon Prashkovsky is expected to under-perform the Ashtrom. In addition to that, Prashkovsky is 1.69 times more volatile than Ashtrom Group. It trades about -0.31 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prashkovsky vs. Ashtrom Group
Performance |
| Timeline |
| Prashkovsky |
| Ashtrom Group |
Prashkovsky and Ashtrom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prashkovsky and Ashtrom
The main advantage of trading using opposite Prashkovsky and Ashtrom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prashkovsky 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.| Prashkovsky vs. Israel Canada | Prashkovsky vs. YH Dimri Construction | Prashkovsky vs. Shikun Binui | Prashkovsky vs. Electra Real Estate |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |