Correlation Between Unitronics and Ashot Ashkelon
Can any of the company-specific risk be diversified away by investing in both Unitronics and Ashot Ashkelon 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 Unitronics and Ashot Ashkelon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unitronics and Ashot Ashkelon Industries, you can compare the effects of market volatilities on Unitronics and Ashot Ashkelon 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 Unitronics with a short position of Ashot Ashkelon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unitronics and Ashot Ashkelon.
Diversification Opportunities for Unitronics and Ashot Ashkelon
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Unitronics and Ashot is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Unitronics and Ashot Ashkelon Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashot Ashkelon Industries and Unitronics 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 Unitronics are associated (or correlated) with Ashot Ashkelon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashot Ashkelon Industries has no effect on the direction of Unitronics i.e., Unitronics and Ashot Ashkelon go up and down completely randomly.
Pair Corralation between Unitronics and Ashot Ashkelon
Assuming the 90 days trading horizon Unitronics is expected to generate 0.4 times more return on investment than Ashot Ashkelon. However, Unitronics is 2.48 times less risky than Ashot Ashkelon. It trades about 0.27 of its potential returns per unit of risk. Ashot Ashkelon Industries is currently generating about -0.12 per unit of risk. If you would invest 275,000 in Unitronics on November 27, 2024 and sell it today you would earn a total of 14,400 from holding Unitronics or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unitronics vs. Ashot Ashkelon Industries
Performance |
| Timeline |
| Unitronics |
| Ashot Ashkelon Industries |
Unitronics and Ashot Ashkelon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unitronics and Ashot Ashkelon
The main advantage of trading using opposite Unitronics and Ashot Ashkelon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unitronics position performs unexpectedly, Ashot Ashkelon 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 Ashot Ashkelon will offset losses from the drop in Ashot Ashkelon's long position.| Unitronics vs. Utron | Unitronics vs. Rapac Communication Infrastructure | Unitronics vs. Accel Solutions Group | Unitronics vs. EN Shoham Business |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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