Correlation Between Amanet Management and Victory Supermarket
Can any of the company-specific risk be diversified away by investing in both Amanet Management and Victory Supermarket 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 Victory Supermarket 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 Victory Supermarket Chain, you can compare the effects of market volatilities on Amanet Management and Victory Supermarket 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 Victory Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanet Management and Victory Supermarket.
Diversification Opportunities for Amanet Management and Victory Supermarket
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amanet and Victory is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amanet Management Systems and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain 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 Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of Amanet Management i.e., Amanet Management and Victory Supermarket go up and down completely randomly.
Pair Corralation between Amanet Management and Victory Supermarket
Assuming the 90 days trading horizon Amanet Management is expected to generate 8.3 times less return on investment than Victory Supermarket. But when comparing it to its historical volatility, Amanet Management Systems is 1.28 times less risky than Victory Supermarket. It trades about 0.02 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 378,374 in Victory Supermarket Chain on August 28, 2024 and sell it today you would earn a total of 163,326 from holding Victory Supermarket Chain or generate 43.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amanet Management Systems vs. Victory Supermarket Chain
Performance |
| Timeline |
| Amanet Management Systems |
| Victory Supermarket Chain |
Amanet Management and Victory Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amanet Management and Victory Supermarket
The main advantage of trading using opposite Amanet Management and Victory Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanet Management position performs unexpectedly, Victory Supermarket 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 Victory Supermarket will offset losses from the drop in Victory Supermarket'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 |
| Victory Supermarket vs. Shufersal | Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Tiv Taam | Victory Supermarket vs. M Yochananof and |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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