Correlation Between Amanet Management and Satcom Systems
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Satcom Systems 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 Satcom Systems 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 Satcom Systems, you can compare the effects of market volatilities on Amanet Management and Satcom Systems 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 Satcom Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Satcom Systems.
Diversification Opportunities for Amanet Management and Satcom Systems
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amanet and Satcom is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Satcom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satcom Systems 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 Satcom Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satcom Systems has no effect on the direction of Amanet Management i.e., Amanet Management and Satcom Systems go up and down completely randomly.
Pair Corralation between Amanet Management and Satcom Systems
Assuming the 90 days trading horizon Amanet Management Systems is expected to under-perform the Satcom Systems. But the stock apears to be less risky and, when comparing its historical volatility, Amanet Management Systems is 2.05 times less risky than Satcom Systems. The stock trades about -0.04 of its potential returns per unit of risk. The Satcom Systems is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,790 in Satcom Systems on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Satcom Systems or generate 0.88% 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. Satcom Systems
Performance |
| Timeline |
| Amanet Management Systems |
| Satcom Systems |
Amanet Management and Satcom Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Satcom Systems
The main advantage of trading using opposite Amanet Management and Satcom Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Satcom Systems 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 Satcom Systems will offset losses from the drop in Satcom Systems' 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 |
| Satcom Systems vs. Amanet Management Systems | Satcom Systems vs. Teuza A Fairchild | Satcom Systems vs. MEITAV INVESTMENTS HOUSE | Satcom Systems vs. Hiron Trade Investments Industrial |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |