Correlation Between Amanet Management and Bezeq Israeli
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Bezeq Israeli 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 Amanet Management and Bezeq Israeli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amanet Management Systems and Bezeq Israeli Telecommunication, you can compare the effects of market volatilities on Amanet Management and Bezeq Israeli 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 Amanet Management with a short position of Bezeq Israeli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Bezeq Israeli.
Diversification Opportunities for Amanet Management and Bezeq Israeli
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanet and Bezeq is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Bezeq Israeli Telecommunicatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bezeq Israeli Teleco and Amanet Management 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 Amanet Management Systems are associated (or correlated) with Bezeq Israeli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bezeq Israeli Teleco has no effect on the direction of Amanet Management i.e., Amanet Management and Bezeq Israeli go up and down completely randomly.
Pair Corralation between Amanet Management and Bezeq Israeli
Assuming the 90 days trading horizon Amanet Management Systems is expected to under-perform the Bezeq Israeli. But the stock apears to be less risky and, when comparing its historical volatility, Amanet Management Systems is 1.16 times less risky than Bezeq Israeli. The stock trades about -0.17 of its potential returns per unit of risk. The Bezeq Israeli Telecommunication is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 48,000 in Bezeq Israeli Telecommunication on January 24, 2024 and sell it today you would lose (2,000) from holding Bezeq Israeli Telecommunication or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Bezeq Israeli Telecommunicatio
Performance |
| Timeline |
| Amanet Management Systems |
| Bezeq Israeli Teleco |
Amanet Management and Bezeq Israeli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Bezeq Israeli
The main advantage of trading using opposite Amanet Management and Bezeq Israeli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Bezeq Israeli 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 Bezeq Israeli will offset losses from the drop in Bezeq Israeli's long position.| Amanet Management vs. Al Bad Massuot Yitzhak | Amanet Management vs. Gan Shmuel | Amanet Management vs. Analyst IMS Investment |
| Bezeq Israeli vs. Bank Leumi Le Israel | Bezeq Israeli vs. Teva Pharmaceutical Industries | Bezeq Israeli vs. Bank Hapoalim | Bezeq Israeli vs. Elbit Systems |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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