Correlation Between Altshuler Shaham and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham and Amot Investments 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 Altshuler Shaham and Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altshuler Shaham Financial and Amot Investments, you can compare the effects of market volatilities on Altshuler Shaham and Amot Investments 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 Altshuler Shaham with a short position of Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and Amot Investments.
Diversification Opportunities for Altshuler Shaham and Amot Investments
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Altshuler and Amot is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments and Altshuler Shaham 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 Altshuler Shaham Financial are associated (or correlated) with Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Altshuler Shaham i.e., Altshuler Shaham and Amot Investments go up and down completely randomly.
Pair Corralation between Altshuler Shaham and Amot Investments
Assuming the 90 days trading horizon Altshuler Shaham Financial is expected to generate 1.16 times more return on investment than Amot Investments. However, Altshuler Shaham is 1.16 times more volatile than Amot Investments. It trades about 0.07 of its potential returns per unit of risk. Amot Investments is currently generating about 0.03 per unit of risk. If you would invest 52,071 in Altshuler Shaham Financial on August 25, 2024 and sell it today you would earn a total of 15,409 from holding Altshuler Shaham Financial or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. Amot Investments
Performance |
| Timeline |
| Altshuler Shaham Fin |
| Amot Investments |
Altshuler Shaham and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and Amot Investments
The main advantage of trading using opposite Altshuler Shaham and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham position performs unexpectedly, Amot Investments 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 Amot Investments will offset losses from the drop in Amot Investments' long position.| Altshuler Shaham vs. Generation Capital | Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. IBI Inv House | Altshuler Shaham vs. Mivtach Shamir |
| Amot Investments vs. Israel Canada | Amot Investments vs. Azrieli Group | Amot Investments vs. Delek Group | Amot Investments vs. Shikun Binui |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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