Correlation Between Nice and Azrieli

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

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

Diversification Opportunities for Nice and Azrieli

-0.5

Correlation Coefficient

Nice  Azrieli

Very good diversification

The 3 months correlation between Nice and Azrieli is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nice and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli Group and Nice 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 Nice are associated (or correlated) with Azrieli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azrieli Group has no effect on the direction of Nice i.e., Nice and Azrieli go up and down completely randomly.

Pair Corralation between Nice and Azrieli

Assuming the 90 days trading horizon Nice is expected to under-perform the Azrieli. In addition to that, Nice is 1.19 times more volatile than Azrieli Group. It trades about -0.04 of its total potential returns per unit of risk. Azrieli Group is currently generating about 0.28 per unit of volatility. If you would invest  2,667,000  in Azrieli Group on April 24, 2025 and sell it today you would earn a total of  793,000  from holding Azrieli Group or generate 29.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.96%
Values	Daily Returns

Nice  vs.  Azrieli Group

Nice

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nice has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Nice is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Azrieli Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Azrieli Group are ranked lower than 22 (%) 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.

Pair Trading with Nice and Azrieli

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

The idea behind Nice and Azrieli 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.