Two Equities Correlation Analysis
Specify exactly 2 symbols:
AMOT.TA
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Amot Investments and NYSE Composite
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amot and NYSE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Amot Investments 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 Amot Investments are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Amot Investments i.e., Amot Investments and NYSE Composite go up and down completely randomly.
Pair Corralation between Amot Investments and NYSE Composite
Assuming the 90 days trading horizon Amot Investments is expected to under-perform the NYSE Composite. In addition to that, Amot Investments is 1.99 times more volatile than NYSE Composite. It trades about -0.02 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.03 per unit of volatility. If you would invest 1,565,261 in NYSE Composite on January 25, 2024 and sell it today you would earn a total of 214,015 from holding NYSE Composite or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 78.79% |
| Values | Daily Returns |
Amot Investments vs. NYSE Composite
Performance |
| Timeline |
Amot Investments and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Amot Investments
Pair trading matchups for Amot Investments
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Amot Investments and NYSE Composite
The main advantage of trading using opposite Amot Investments and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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