Correlation Between Amanet Management and EN Shoham
Can any of the company-specific risk be diversified away by investing in both Amanet Management and EN Shoham 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 EN Shoham 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 EN Shoham Business, you can compare the effects of market volatilities on Amanet Management and EN Shoham 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 EN Shoham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and EN Shoham.
Diversification Opportunities for Amanet Management and EN Shoham
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanet and SHOM is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and EN Shoham Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EN Shoham Business 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 EN Shoham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EN Shoham Business has no effect on the direction of Amanet Management i.e., Amanet Management and EN Shoham go up and down completely randomly.
Pair Corralation between Amanet Management and EN Shoham
Assuming the 90 days trading horizon Amanet Management is expected to generate 5.55 times less return on investment than EN Shoham. But when comparing it to its historical volatility, Amanet Management Systems is 1.06 times less risky than EN Shoham. It trades about 0.04 of its potential returns per unit of risk. EN Shoham Business is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 48,612 in EN Shoham Business on September 3, 2024 and sell it today you would earn a total of 17,548 from holding EN Shoham Business or generate 36.1% 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. EN Shoham Business
Performance |
| Timeline |
| Amanet Management Systems |
| EN Shoham Business |
Amanet Management and EN Shoham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and EN Shoham
The main advantage of trading using opposite Amanet Management and EN Shoham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, EN Shoham 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 EN Shoham will offset losses from the drop in EN Shoham's long position.| Amanet Management vs. EN Shoham Business | Amanet Management vs. Accel Solutions Group | Amanet Management vs. Mivtach Shamir | Amanet Management vs. Rani Zim Shopping |
| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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