Correlation Between Amanet Management and Nice
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Nice 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 Nice 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 Nice, you can compare the effects of market volatilities on Amanet Management and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Nice.
Diversification Opportunities for Amanet Management and Nice
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amanet and Nice is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Amanet Management i.e., Amanet Management and Nice go up and down completely randomly.
Pair Corralation between Amanet Management and Nice
Assuming the 90 days trading horizon Amanet Management Systems is expected to under-perform the Nice. But the stock apears to be less risky and, when comparing its historical volatility, Amanet Management Systems is 1.83 times less risky than Nice. The stock trades about -0.3 of its potential returns per unit of risk. The Nice is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,853,000 in Nice on January 19, 2024 and sell it today you would lose (74,000) from holding Nice or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Amanet Management Systems vs. Nice
Performance |
| Timeline |
| Amanet Management Systems |
| Nice |
Amanet Management and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Nice
The main advantage of trading using opposite Amanet Management and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Amanet Management vs. EN Shoham Business | Amanet Management vs. Accel Solutions Group | Amanet Management vs. Mivtach Shamir | Amanet Management vs. Rani Zim Shopping |
| Nice vs. Automatic Bank Services | Nice vs. EN Shoham Business | Nice vs. Rapac Communication Infrastructure | Nice vs. Tadiran Hldg |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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