Correlation Between Amanet Management and Opal Balance
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Opal Balance 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 Opal Balance 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 Opal Balance, you can compare the effects of market volatilities on Amanet Management and Opal Balance 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 Opal Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Opal Balance.
Diversification Opportunities for Amanet Management and Opal Balance
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amanet and Opal is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Opal Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opal Balance 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 Opal Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opal Balance has no effect on the direction of Amanet Management i.e., Amanet Management and Opal Balance go up and down completely randomly.
Pair Corralation between Amanet Management and Opal Balance
Assuming the 90 days trading horizon Amanet Management is expected to generate 4.05 times less return on investment than Opal Balance. But when comparing it to its historical volatility, Amanet Management Systems is 1.81 times less risky than Opal Balance. It trades about 0.02 of its potential returns per unit of risk. Opal Balance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 16,804 in Opal Balance on November 2, 2024 and sell it today you would earn a total of 5,336 from holding Opal Balance or generate 31.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Opal Balance
Performance |
| Timeline |
| Amanet Management Systems |
| Opal Balance |
Amanet Management and Opal Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Opal Balance
The main advantage of trading using opposite Amanet Management and Opal Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Opal Balance 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 Opal Balance will offset losses from the drop in Opal Balance'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 |
| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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