Correlation Between Amanet Management and Ilex Medical
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Ilex Medical 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 Ilex Medical 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 Ilex Medical, you can compare the effects of market volatilities on Amanet Management and Ilex Medical 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 Ilex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Ilex Medical.
Diversification Opportunities for Amanet Management and Ilex Medical
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amanet and Ilex is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Ilex Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ilex Medical 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 Ilex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ilex Medical has no effect on the direction of Amanet Management i.e., Amanet Management and Ilex Medical go up and down completely randomly.
Pair Corralation between Amanet Management and Ilex Medical
Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 0.86 times more return on investment than Ilex Medical. However, Amanet Management Systems is 1.16 times less risky than Ilex Medical. It trades about 0.03 of its potential returns per unit of risk. Ilex Medical is currently generating about -0.02 per unit of risk. If you would invest 141,678 in Amanet Management Systems on August 28, 2024 and sell it today you would earn a total of 17,022 from holding Amanet Management Systems or generate 12.01% 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. Ilex Medical
Performance |
| Timeline |
| Amanet Management Systems |
| Ilex Medical |
Amanet Management and Ilex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Ilex Medical
The main advantage of trading using opposite Amanet Management and Ilex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Ilex Medical 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 Ilex Medical will offset losses from the drop in Ilex Medical's long position.| Amanet Management vs. Arad | Amanet Management vs. Alony Hetz Properties | Amanet Management vs. Danel | Amanet Management vs. Airport City |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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