Correlation Between Newage and Amanet Management
Can any of the company-specific risk be diversified away by investing in both Newage and Amanet Management 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 Newage and Amanet Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newage Inc and Amanet Management Systems, you can compare the effects of market volatilities on Newage and Amanet Management 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 Newage with a short position of Amanet Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newage and Amanet Management.
Diversification Opportunities for Newage and Amanet Management
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newage and Amanet is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Newage Inc and Amanet Management Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanet Management Systems and Newage 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 Newage Inc are associated (or correlated) with Amanet Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanet Management Systems has no effect on the direction of Newage i.e., Newage and Amanet Management go up and down completely randomly.
Pair Corralation between Newage and Amanet Management
If you would invest 0.50 in Newage Inc on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Newage Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Newage Inc vs. Amanet Management Systems
Performance |
| Timeline |
| Newage Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amanet Management Systems |
Newage and Amanet Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newage and Amanet Management
The main advantage of trading using opposite Newage and Amanet Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newage position performs unexpectedly, Amanet Management 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 Amanet Management will offset losses from the drop in Amanet Management's long position.The idea behind Newage Inc and Amanet Management Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amanet Management vs. EN Shoham Business | Amanet Management vs. Accel Solutions Group | Amanet Management vs. Mivtach Shamir | Amanet Management vs. Rani Zim Shopping |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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