Correlation Between Tamar Petroleum and Dor Alon

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

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

Diversification Opportunities for Tamar Petroleum and Dor Alon

0.0

Correlation Coefficient

Tamar Petroleum  Dor Alon

Pay attention - limited upside

The 3 months correlation between Tamar and Dor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tamar Petroleum and Dor Alon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dor Alon and Tamar Petroleum 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 Tamar Petroleum are associated (or correlated) with Dor Alon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dor Alon has no effect on the direction of Tamar Petroleum i.e., Tamar Petroleum and Dor Alon go up and down completely randomly.

Pair Corralation between Tamar Petroleum and Dor Alon

If you would invest (100.00) in Dor Alon on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Dor Alon or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tamar Petroleum  vs.  Dor Alon

Tamar Petroleum

Risk-Adjusted Performance

Weakest

Over the last 90 days Tamar Petroleum 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.

Dor Alon

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dor Alon are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dor Alon sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tamar Petroleum and Dor Alon

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

The idea behind Tamar Petroleum and Dor Alon 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.