Correlation Between Amanet Management and Equital
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Equital 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 Equital 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 Equital, you can compare the effects of market volatilities on Amanet Management and Equital 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 Equital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Equital.
Diversification Opportunities for Amanet Management and Equital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amanet and Equital is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Equital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equital 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 Equital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equital has no effect on the direction of Amanet Management i.e., Amanet Management and Equital go up and down completely randomly.
Pair Corralation between Amanet Management and Equital
Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 0.91 times more return on investment than Equital. However, Amanet Management Systems is 1.09 times less risky than Equital. It trades about 0.05 of its potential returns per unit of risk. Equital is currently generating about -0.26 per unit of risk. If you would invest 170,000 in Amanet Management Systems on January 26, 2024 and sell it today you would earn a total of 2,300 from holding Amanet Management Systems or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Equital
Performance |
| Timeline |
| Amanet Management Systems |
| Equital |
Amanet Management and Equital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Equital
The main advantage of trading using opposite Amanet Management and Equital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Equital 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 Equital will offset losses from the drop in Equital's long position.| Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Melisron | Amanet Management vs. Shufersal | Amanet Management vs. Israel Discount Bank |
| Equital vs. Airport City | Equital vs. Naphtha | Equital vs. Menora Miv Hld | Equital vs. Delek Automotive 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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