Correlation Between Amot Investments and Azrieli
Can any of the company-specific risk be diversified away by investing in both Amot Investments and Azrieli 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 Amot Investments and Azrieli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amot Investments and Azrieli Group, you can compare the effects of market volatilities on Amot Investments and Azrieli 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 Amot Investments with a short position of Azrieli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amot Investments and Azrieli.
Diversification Opportunities for Amot Investments and Azrieli
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amot and Azrieli is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amot Investments and Azrieli Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azrieli Group and Amot Investments 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 Amot Investments are associated (or correlated) with Azrieli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azrieli Group has no effect on the direction of Amot Investments i.e., Amot Investments and Azrieli go up and down completely randomly.
Pair Corralation between Amot Investments and Azrieli
Assuming the 90 days trading horizon Amot Investments is expected to generate 0.85 times more return on investment than Azrieli. However, Amot Investments is 1.18 times less risky than Azrieli. It trades about 0.68 of its potential returns per unit of risk. Azrieli Group is currently generating about 0.23 per unit of risk. If you would invest 167,500 in Amot Investments on August 24, 2024 and sell it today you would earn a total of 28,500 from holding Amot Investments or generate 17.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amot Investments vs. Azrieli Group
Performance |
| Timeline |
| Amot Investments |
| Azrieli Group |
Amot Investments and Azrieli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amot Investments and Azrieli
The main advantage of trading using opposite Amot Investments and Azrieli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amot Investments position performs unexpectedly, Azrieli 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 Azrieli will offset losses from the drop in Azrieli's long position.| Amot Investments vs. Alony Hetz Properties | Amot Investments vs. Azrieli Group | Amot Investments vs. Melisron | Amot Investments vs. Bank Leumi Le Israel |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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