Correlation Between Amanet Management and Poalim Ibi
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Poalim Ibi 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 Poalim Ibi 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 Poalim Ibi, you can compare the effects of market volatilities on Amanet Management and Poalim Ibi 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 Poalim Ibi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Poalim Ibi.
Diversification Opportunities for Amanet Management and Poalim Ibi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amanet and Poalim is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Poalim Ibi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poalim Ibi 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 Poalim Ibi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poalim Ibi has no effect on the direction of Amanet Management i.e., Amanet Management and Poalim Ibi go up and down completely randomly.
Pair Corralation between Amanet Management and Poalim Ibi
Assuming the 90 days trading horizon Amanet Management is expected to generate 1.7 times less return on investment than Poalim Ibi. In addition to that, Amanet Management is 1.16 times more volatile than Poalim Ibi. It trades about 0.21 of its total potential returns per unit of risk. Poalim Ibi is currently generating about 0.42 per unit of volatility. If you would invest 74,800 in Poalim Ibi on October 20, 2024 and sell it today you would earn a total of 12,200 from holding Poalim Ibi or generate 16.31% 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. Poalim Ibi
Performance |
| Timeline |
| Amanet Management Systems |
| Poalim Ibi |
Amanet Management and Poalim Ibi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Poalim Ibi
The main advantage of trading using opposite Amanet Management and Poalim Ibi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Poalim Ibi 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 Poalim Ibi will offset losses from the drop in Poalim Ibi'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 |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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