Correlation Between Azrieli and Cellcom Israel
Can any of the company-specific risk be diversified away by investing in both Azrieli and Cellcom Israel 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 Azrieli and Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azrieli Group and Cellcom Israel, you can compare the effects of market volatilities on Azrieli and Cellcom Israel 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 Azrieli with a short position of Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azrieli and Cellcom Israel.
Diversification Opportunities for Azrieli and Cellcom Israel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Azrieli and Cellcom is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Cellcom Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellcom Israel and Azrieli 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 Azrieli Group are associated (or correlated) with Cellcom Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellcom Israel has no effect on the direction of Azrieli i.e., Azrieli and Cellcom Israel go up and down completely randomly.
Pair Corralation between Azrieli and Cellcom Israel
Assuming the 90 days trading horizon Azrieli Group is expected to under-perform the Cellcom Israel. But the stock apears to be less risky and, when comparing its historical volatility, Azrieli Group is 1.28 times less risky than Cellcom Israel. The stock trades about -0.02 of its potential returns per unit of risk. The Cellcom Israel is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 193,500 in Cellcom Israel on December 4, 2024 and sell it today you would earn a total of 54,700 from holding Cellcom Israel or generate 28.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Azrieli Group vs. Cellcom Israel
Performance |
Timeline |
Azrieli Group |
Cellcom Israel |
Azrieli and Cellcom Israel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Azrieli and Cellcom Israel
The main advantage of trading using opposite Azrieli and Cellcom Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azrieli position performs unexpectedly, Cellcom Israel 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 Cellcom Israel will offset losses from the drop in Cellcom Israel's long position.Azrieli vs. Melisron | Azrieli vs. Bank Leumi Le Israel | Azrieli vs. Bank Hapoalim | Azrieli vs. Amot Investments |
Cellcom Israel vs. Imed Infinity Medical Limited | Cellcom Israel vs. Sofwave Medical | Cellcom Israel vs. Suny Cellular Communication | Cellcom Israel vs. Rapac Communication Infrastructure |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data |