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
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Big and Alony is 0.57. 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 generate 0.54 times more return on investment than Alony Hetz. However, Big Shopping Centers is 1.87 times less risky than Alony Hetz. It trades about 0.2 of its potential returns per unit of risk. Alony Hetz Properties is currently generating about 0.1 per unit of risk. If you would invest 4,790,000 in Big Shopping Centers on December 2, 2024 and sell it today you would earn a total of 687,000 from holding Big Shopping Centers or generate 14.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Big Shopping Centers vs. Alony Hetz Properties
Performance |
Timeline |
Big Shopping Centers |
Alony Hetz Properties |
Big Shopping and Alony Hetz Volatility Contrast
Predicted Return Density |
Returns |
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.Big Shopping vs. Azrieli Group | Big Shopping vs. Melisron | Big Shopping vs. Amot Investments | Big Shopping vs. Alony Hetz Properties |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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