Correlation Between Amanet Management and Elbit Systems
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Elbit Systems 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 Elbit Systems 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 Elbit Systems, you can compare the effects of market volatilities on Amanet Management and Elbit Systems 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 Elbit Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Elbit Systems.
Diversification Opportunities for Amanet Management and Elbit Systems
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amanet and Elbit is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Elbit Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Systems 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 Elbit Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Systems has no effect on the direction of Amanet Management i.e., Amanet Management and Elbit Systems go up and down completely randomly.
Pair Corralation between Amanet Management and Elbit Systems
Assuming the 90 days trading horizon Amanet Management Systems is expected to under-perform the Elbit Systems. But the stock apears to be less risky and, when comparing its historical volatility, Amanet Management Systems is 1.02 times less risky than Elbit Systems. The stock trades about -0.17 of its potential returns per unit of risk. The Elbit Systems is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,488,000 in Elbit Systems on January 24, 2024 and sell it today you would earn a total of 67,000 from holding Elbit Systems or generate 0.89% 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. Elbit Systems
Performance |
| Timeline |
| Amanet Management Systems |
| Elbit Systems |
Amanet Management and Elbit Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Elbit Systems
The main advantage of trading using opposite Amanet Management and Elbit Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Elbit Systems 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 Elbit Systems will offset losses from the drop in Elbit Systems' long position.| Amanet Management vs. Al Bad Massuot Yitzhak | Amanet Management vs. Gan Shmuel | Amanet Management vs. Analyst IMS Investment |
| Elbit Systems vs. Al Bad Massuot Yitzhak | Elbit Systems vs. Gan Shmuel | Elbit Systems vs. Analyst IMS 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |