Correlation Between Amanet Management and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Amanet Management and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Batm Advanced.
Diversification Opportunities for Amanet Management and Batm Advanced
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amanet and Batm is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Amanet Management i.e., Amanet Management and Batm Advanced go up and down completely randomly.
Pair Corralation between Amanet Management and Batm Advanced
Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 0.7 times more return on investment than Batm Advanced. However, Amanet Management Systems is 1.43 times less risky than Batm Advanced. It trades about 0.04 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.24 per unit of risk. If you would invest 156,900 in Amanet Management Systems on August 28, 2024 and sell it today you would earn a total of 1,800 from holding Amanet Management Systems or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Batm Advanced Communications
Performance |
| Timeline |
| Amanet Management Systems |
| Batm Advanced Commun |
Amanet Management and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Batm Advanced
The main advantage of trading using opposite Amanet Management and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Amanet Management vs. Arad | Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Danel | Amanet Management vs. Airport City |
| Batm Advanced vs. B Communications | Batm Advanced vs. First International Bank | Batm Advanced vs. YD More Investments | Batm Advanced vs. Menif Financial Services |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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