Correlation Between Amanet Management and Aerodrome
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Aerodrome 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 Aerodrome 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 Aerodrome Group, you can compare the effects of market volatilities on Amanet Management and Aerodrome 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 Aerodrome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Aerodrome.
Diversification Opportunities for Amanet Management and Aerodrome
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amanet and Aerodrome is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Aerodrome Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerodrome Group 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 Aerodrome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerodrome Group has no effect on the direction of Amanet Management i.e., Amanet Management and Aerodrome go up and down completely randomly.
Pair Corralation between Amanet Management and Aerodrome
Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 0.29 times more return on investment than Aerodrome. However, Amanet Management Systems is 3.47 times less risky than Aerodrome. It trades about 0.11 of its potential returns per unit of risk. Aerodrome Group is currently generating about -0.34 per unit of risk. If you would invest 157,600 in Amanet Management Systems on September 4, 2024 and sell it today you would earn a total of 4,700 from holding Amanet Management Systems or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Aerodrome Group
Performance |
| Timeline |
| Amanet Management Systems |
| Aerodrome Group |
Amanet Management and Aerodrome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Aerodrome
The main advantage of trading using opposite Amanet Management and Aerodrome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Aerodrome 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 Aerodrome will offset losses from the drop in Aerodrome'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 |
| Aerodrome vs. One Software Technologies | Aerodrome vs. Suny Cellular Communication | Aerodrome vs. Multi Retail Group | Aerodrome vs. B Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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