Correlation Between Amanet Management and Meitav Trade
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Meitav Trade 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 Meitav Trade 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 Meitav Trade Inv, you can compare the effects of market volatilities on Amanet Management and Meitav Trade 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 Meitav Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Meitav Trade.
Diversification Opportunities for Amanet Management and Meitav Trade
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amanet and Meitav is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Meitav Trade Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitav Trade Inv 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 Meitav Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitav Trade Inv has no effect on the direction of Amanet Management i.e., Amanet Management and Meitav Trade go up and down completely randomly.
Pair Corralation between Amanet Management and Meitav Trade
Assuming the 90 days trading horizon Amanet Management Systems is expected to generate 1.37 times more return on investment than Meitav Trade. However, Amanet Management is 1.37 times more volatile than Meitav Trade Inv. It trades about 0.16 of its potential returns per unit of risk. Meitav Trade Inv is currently generating about 0.22 per unit of risk. If you would invest 169,900 in Amanet Management Systems on November 3, 2024 and sell it today you would earn a total of 10,000 from holding Amanet Management Systems or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Meitav Trade Inv
Performance |
| Timeline |
| Amanet Management Systems |
| Meitav Trade Inv |
Amanet Management and Meitav Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Meitav Trade
The main advantage of trading using opposite Amanet Management and Meitav Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Meitav Trade 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 Meitav Trade will offset losses from the drop in Meitav Trade'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 |
| Meitav Trade vs. Inrom Construction Industries | Meitav Trade vs. Amot Investments | Meitav Trade vs. Suny Cellular Communication | Meitav Trade vs. Feat Fund Investments |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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