Correlation Between Alony Hetz and Argo Properties

Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Argo Properties 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 Alony Hetz and Argo Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alony Hetz Properties and Argo Properties NV, you can compare the effects of market volatilities on Alony Hetz and Argo Properties 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 Alony Hetz with a short position of Argo Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Argo Properties.

Diversification Opportunities for Alony Hetz and Argo Properties

0.9

Correlation Coefficient

Alony Hetz  Argo Properties

Almost no diversification

The 3 months correlation between Alony and Argo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Argo Properties NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Properties NV and Alony Hetz 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 Alony Hetz Properties are associated (or correlated) with Argo Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Properties NV has no effect on the direction of Alony Hetz i.e., Alony Hetz and Argo Properties go up and down completely randomly.

Pair Corralation between Alony Hetz and Argo Properties

Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 1.28 times more return on investment than Argo Properties. However, Alony Hetz is 1.28 times more volatile than Argo Properties NV. It trades about 0.08 of its potential returns per unit of risk. Argo Properties NV is currently generating about 0.07 per unit of risk. If you would invest  309,500  in Alony Hetz Properties on December 3, 2024 and sell it today you would earn a total of  28,500  from holding Alony Hetz Properties or generate 9.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.08%
Values	Daily Returns

Alony Hetz Properties  vs.  Argo Properties NV

Alony Hetz Properties

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alony Hetz Properties are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Alony Hetz may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Argo Properties NV

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Properties NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Argo Properties may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alony Hetz and Argo Properties

The main advantage of trading using opposite Alony Hetz and Argo Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Argo Properties 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 Argo Properties will offset losses from the drop in Argo Properties' long position.

The idea behind Alony Hetz Properties and Argo Properties NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.