Correlation Between Shikun Binui and Alony Hetz
Can any of the company-specific risk be diversified away by investing in both Shikun Binui and Alony Hetz 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 Shikun Binui and Alony Hetz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Alony Hetz Properties, you can compare the effects of market volatilities on Shikun Binui and Alony Hetz 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 Shikun Binui with a short position of Alony Hetz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Alony Hetz.
Diversification Opportunities for Shikun Binui and Alony Hetz
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shikun and Alony is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Alony Hetz Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alony Hetz Properties and Shikun Binui 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 Shikun Binui are associated (or correlated) with Alony Hetz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alony Hetz Properties has no effect on the direction of Shikun Binui i.e., Shikun Binui and Alony Hetz go up and down completely randomly.
Pair Corralation between Shikun Binui and Alony Hetz
Assuming the 90 days trading horizon Shikun Binui is expected to under-perform the Alony Hetz. But the stock apears to be less risky and, when comparing its historical volatility, Shikun Binui is 1.04 times less risky than Alony Hetz. The stock trades about -0.02 of its potential returns per unit of risk. The Alony Hetz Properties is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 303,500 in Alony Hetz Properties on October 21, 2024 and sell it today you would earn a total of 7,100 from holding Alony Hetz Properties or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shikun Binui vs. Alony Hetz Properties
Performance |
| Timeline |
| Shikun Binui |
| Alony Hetz Properties |
Shikun Binui and Alony Hetz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shikun Binui and Alony Hetz
The main advantage of trading using opposite Shikun Binui and Alony Hetz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui position performs unexpectedly, Alony Hetz 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 Alony Hetz will offset losses from the drop in Alony Hetz's long position.| Shikun Binui vs. Israel Discount Bank | Shikun Binui vs. Bezeq Israeli Telecommunication | Shikun Binui vs. Azrieli Group | Shikun Binui vs. Bank Hapoalim |
| Alony Hetz vs. Amot Investments | Alony Hetz vs. Azrieli Group | Alony Hetz vs. Melisron | Alony Hetz 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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