Correlation Between Ashot Ashkelon and Nice
Can any of the company-specific risk be diversified away by investing in both Ashot Ashkelon and Nice 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 Ashot Ashkelon and Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashot Ashkelon Industries and Nice, you can compare the effects of market volatilities on Ashot Ashkelon and Nice 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 Ashot Ashkelon with a short position of Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashot Ashkelon and Nice.
Diversification Opportunities for Ashot Ashkelon and Nice
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ashot and Nice is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ashot Ashkelon Industries and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice and Ashot Ashkelon 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 Ashot Ashkelon Industries are associated (or correlated) with Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Ashot Ashkelon i.e., Ashot Ashkelon and Nice go up and down completely randomly.
Pair Corralation between Ashot Ashkelon and Nice
Assuming the 90 days trading horizon Ashot Ashkelon Industries is expected to generate 1.22 times more return on investment than Nice. However, Ashot Ashkelon is 1.22 times more volatile than Nice. It trades about 0.12 of its potential returns per unit of risk. Nice is currently generating about 0.04 per unit of risk. If you would invest 137,847 in Ashot Ashkelon Industries on January 24, 2024 and sell it today you would earn a total of 130,453 from holding Ashot Ashkelon Industries or generate 94.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ashot Ashkelon Industries vs. Nice
Performance |
Timeline |
Ashot Ashkelon Industries |
Nice |
Ashot Ashkelon and Nice Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ashot Ashkelon and Nice
The main advantage of trading using opposite Ashot Ashkelon and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashot Ashkelon position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.Ashot Ashkelon vs. Al Bad Massuot Yitzhak | Ashot Ashkelon vs. Gan Shmuel | Ashot Ashkelon vs. Analyst IMS Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |