Correlation Between Azrieli and Terminal X

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

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

Diversification Opportunities for Azrieli and Terminal X

0.94

Correlation Coefficient

Azrieli  Terminal X

Almost no diversification

The 3 months correlation between Azrieli and Terminal is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Azrieli Group and Terminal X Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terminal X Online and Azrieli 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 Azrieli Group are associated (or correlated) with Terminal X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terminal X Online has no effect on the direction of Azrieli i.e., Azrieli and Terminal X go up and down completely randomly.

Pair Corralation between Azrieli and Terminal X

Assuming the 90 days trading horizon Azrieli Group is expected to generate 1.35 times more return on investment than Terminal X. However, Azrieli is 1.35 times more volatile than Terminal X Online. It trades about 0.26 of its potential returns per unit of risk. Terminal X Online is currently generating about 0.19 per unit of risk. If you would invest  2,644,000  in Azrieli Group on April 30, 2025 and sell it today you would earn a total of  710,000  from holding Azrieli Group or generate 26.85% return on investment over 90 days.

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

Azrieli Group  vs.  Terminal X Online

Azrieli Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Azrieli Group are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Azrieli sustained solid returns over the last few months and may actually be approaching a breakup point.

Terminal X Online

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Terminal X Online are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Terminal X sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Azrieli and Terminal X

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

The idea behind Azrieli Group and Terminal X Online 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.