Correlation Between Alony Hetz and Delek

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Can any of the company-specific risk be diversified away by investing in both Alony Hetz and Delek 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 Delek 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 Delek Group, you can compare the effects of market volatilities on Alony Hetz and Delek 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 Delek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alony Hetz and Delek.

Diversification Opportunities for Alony Hetz and Delek

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Alony and Delek is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Alony Hetz Properties and Delek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Group 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 Delek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Group has no effect on the direction of Alony Hetz i.e., Alony Hetz and Delek go up and down completely randomly.

Pair Corralation between Alony Hetz and Delek

Assuming the 90 days trading horizon Alony Hetz Properties is expected to generate 1.11 times more return on investment than Delek. However, Alony Hetz is 1.11 times more volatile than Delek Group. It trades about 0.16 of its potential returns per unit of risk. Delek Group is currently generating about -0.02 per unit of risk. If you would invest  254,333  in Alony Hetz Properties on December 30, 2023 and sell it today you would earn a total of  15,567  from holding Alony Hetz Properties or generate 6.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Alony Hetz Properties  vs.  Delek Group

 Performance 
       Timeline  
Alony Hetz Properties 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Alony Hetz Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Delek Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Delek Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Delek is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Alony Hetz and Delek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alony Hetz and Delek

The main advantage of trading using opposite Alony Hetz and Delek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alony Hetz position performs unexpectedly, Delek 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 Delek will offset losses from the drop in Delek's long position.
The idea behind Alony Hetz Properties and Delek Group 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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