Correlation Between Prashkovsky and Azrieli
Can any of the company-specific risk be diversified away by investing in both Prashkovsky 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 Prashkovsky and Azrieli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prashkovsky and Azrieli Group, you can compare the effects of market volatilities on Prashkovsky 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 Prashkovsky with a short position of Azrieli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prashkovsky and Azrieli.
Diversification Opportunities for Prashkovsky and Azrieli
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Prashkovsky and Azrieli is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Prashkovsky and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli 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 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 Prashkovsky i.e., Prashkovsky and Azrieli go up and down completely randomly.
Pair Corralation between Prashkovsky and Azrieli
Assuming the 90 days trading horizon Prashkovsky is expected to generate 1.48 times more return on investment than Azrieli. However, Prashkovsky is 1.48 times more volatile than Azrieli Group. It trades about 0.12 of its potential returns per unit of risk. Azrieli Group is currently generating about 0.08 per unit of risk. If you would invest 1,024,000 in Prashkovsky on September 1, 2024 and sell it today you would earn a total of 38,000 from holding Prashkovsky or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prashkovsky vs. Azrieli Group
Performance |
| Timeline |
| Prashkovsky |
| Azrieli Group |
Prashkovsky and Azrieli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prashkovsky and Azrieli
The main advantage of trading using opposite Prashkovsky and Azrieli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prashkovsky 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.| Prashkovsky vs. Fattal 1998 Holdings | Prashkovsky vs. Azrieli Group | Prashkovsky vs. Clal Insurance Enterprises |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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