Correlation Between Ayalon Holdings and Unitronics

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

By analyzing existing cross correlation between Ayalon Holdings and Unitronics, you can compare the effects of market volatilities on Ayalon Holdings and Unitronics 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 Ayalon Holdings with a short position of Unitronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayalon Holdings and Unitronics.

Diversification Opportunities for Ayalon Holdings and Unitronics

0.12

Correlation Coefficient

Ayalon Holdings  Unitronics

Average diversification

The 3 months correlation between Ayalon and Unitronics is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ayalon Holdings and Unitronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronics and Ayalon Holdings 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 Ayalon Holdings are associated (or correlated) with Unitronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronics has no effect on the direction of Ayalon Holdings i.e., Ayalon Holdings and Unitronics go up and down completely randomly.

Pair Corralation between Ayalon Holdings and Unitronics

Assuming the 90 days trading horizon Ayalon Holdings is expected to generate 1.39 times more return on investment than Unitronics. However, Ayalon Holdings is 1.39 times more volatile than Unitronics. It trades about 0.03 of its potential returns per unit of risk. Unitronics is currently generating about -0.04 per unit of risk. If you would invest  658,415  in Ayalon Holdings on July 9, 2025 and sell it today you would earn a total of  15,685  from holding Ayalon Holdings or generate 2.38% return on investment over 90 days.

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

Ayalon Holdings  vs.  Unitronics

Ayalon Holdings

Risk-Adjusted Performance

Weak

Over the last 90 days Ayalon Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Ayalon Holdings may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Unitronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Unitronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Ayalon Holdings and Unitronics

The main advantage of trading using opposite Ayalon Holdings and Unitronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayalon Holdings position performs unexpectedly, Unitronics 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 Unitronics will offset losses from the drop in Unitronics' long position.

The idea behind Ayalon Holdings and Unitronics 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.