Correlation Between Amanet Management and Michman Basad
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Michman Basad 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 Michman Basad 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 Michman Basad, you can compare the effects of market volatilities on Amanet Management and Michman Basad 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 Michman Basad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Michman Basad.
Diversification Opportunities for Amanet Management and Michman Basad
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanet and Michman is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Michman Basad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Michman Basad 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 Michman Basad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Michman Basad has no effect on the direction of Amanet Management i.e., Amanet Management and Michman Basad go up and down completely randomly.
Pair Corralation between Amanet Management and Michman Basad
Assuming the 90 days trading horizon Amanet Management is expected to generate 9.0 times less return on investment than Michman Basad. In addition to that, Amanet Management is 1.35 times more volatile than Michman Basad. It trades about 0.01 of its total potential returns per unit of risk. Michman Basad is currently generating about 0.11 per unit of volatility. If you would invest 1,555,000 in Michman Basad on August 25, 2024 and sell it today you would earn a total of 449,000 from holding Michman Basad or generate 28.87% 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. Michman Basad
Performance |
| Timeline |
| Amanet Management Systems |
| Michman Basad |
Amanet Management and Michman Basad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Michman Basad
The main advantage of trading using opposite Amanet Management and Michman Basad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Michman Basad 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 Michman Basad will offset losses from the drop in Michman Basad's long position.| Amanet Management vs. Aran Research and | Amanet Management vs. Al Bad Massuot Yitzhak | Amanet Management vs. Gan Shmuel | Amanet Management vs. Analyst IMS Investment |
| Michman Basad vs. Isracard | Michman Basad vs. Menif Financial Services | Michman Basad vs. MLRN Projects and | Michman Basad vs. Bull Trading And |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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