Correlation Between Amanet Management and Aura Investments
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Aura 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 Amanet Management and Aura Investments 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 Aura Investments, you can compare the effects of market volatilities on Amanet Management and Aura 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 Amanet Management with a short position of Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Aura Investments.
Diversification Opportunities for Amanet Management and Aura Investments
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanet and Aura is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Investments 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 Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of Amanet Management i.e., Amanet Management and Aura Investments go up and down completely randomly.
Pair Corralation between Amanet Management and Aura Investments
Assuming the 90 days trading horizon Amanet Management is expected to generate 1.51 times less return on investment than Aura Investments. But when comparing it to its historical volatility, Amanet Management Systems is 1.46 times less risky than Aura Investments. It trades about 0.1 of its potential returns per unit of risk. Aura Investments is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 181,700 in Aura Investments on August 27, 2024 and sell it today you would earn a total of 6,200 from holding Aura Investments or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Aura Investments
Performance |
| Timeline |
| Amanet Management Systems |
| Aura Investments |
Amanet Management and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Aura Investments
The main advantage of trading using opposite Amanet Management and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Aura 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| Amanet Management vs. Arad | Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Danel | Amanet Management vs. Airport City |
| Aura Investments vs. Israel Canada | Aura Investments vs. Delek Group | Aura Investments vs. Shikun Binui | Aura Investments vs. Israel Discount Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |