Correlation Between Big Shopping and Alony Hetz

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

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

Diversification Opportunities for Big Shopping and Alony Hetz

0.37

Correlation Coefficient

Big Shopping  Alony Hetz

Weak diversification

The 3 months correlation between Big and Alony is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Big Shopping Centers 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 Big Shopping 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 Big Shopping Centers 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 Big Shopping i.e., Big Shopping and Alony Hetz go up and down completely randomly.

Pair Corralation between Big Shopping and Alony Hetz

Assuming the 90 days trading horizon Big Shopping Centers is expected to under-perform the Alony Hetz. But the stock apears to be less risky and, when comparing its historical volatility, Big Shopping Centers is 1.55 times less risky than Alony Hetz. The stock trades about -0.05 of its potential returns per unit of risk. The Alony Hetz Properties is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  291,751  in Alony Hetz Properties on December 28, 2024 and sell it today you would earn a total of  1,349  from holding Alony Hetz Properties or generate 0.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Big Shopping Centers  vs.  Alony Hetz Properties

Big Shopping Centers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Big Shopping Centers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Big Shopping is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Alony Hetz Properties

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alony Hetz Properties are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Alony Hetz is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Big Shopping and Alony Hetz

The main advantage of trading using opposite Big Shopping and Alony Hetz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Shopping 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.

The idea behind Big Shopping Centers and Alony Hetz Properties 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.